The biggest threat to the television industry isn’t consumers who cut their cable-TV subscriptions, warns a Credit Suisse analyst, according to the Los Angeles Times’ Company Town blog. A greater threat is young people who never sign up for a TV service to begin with, according to the analyst.
Teenagers today are tomorrow’s "cord-nevers," warns Stefan Anninger, the story says.
"They are growing up in an Internet-based video culture in which the mantras of ‘why would I pay for TV?,’ ‘pay TV is a rip-off’ and ‘I can find that for free on the Web’ are getting louder. We fear that some of these consumers will find pay TV far less relevant to their lives than do today’s adults," Anninger wrote in his report, the article says.
The analyst predicts that the multichannel video business will lose 200,000 subscribers in 2012, ending with 100.5 million.