Why the Cable Sector Is Bracing for a Bloodbath

Mar 22, 2017  •  Post A Comment

Patience appears to be growing thin in the cable space, where many insiders feel the “too-much-TV environment,” as Variety calls it, has set the stage for a kill-off of underperforming channels.

“NBCUniversal’s decision in January to shutter two of the weakest linear outlets in its channel portfolio — Esquire Network and Cloo — was a warning shot that is reverberating throughout the pay-TV jungle,” Variety reports. “The thinning of the cable-channel herd has begun.”

The report quotes Coleman Breland, distribution president for Turner Broadcasting, saying: “I think, over time, you’re going to have more and more linear networks go by the wayside. I think that’s actually necessary. So many of these networks do less than 100,000 viewers in total-day average; there just aren’t enough eyeballs to support them. But they’re taking money out of the ecosystem.”

Variety adds: “The new scrutiny on underperforming channels goes hand in hand with the other big jolt in the pay-TV arena: the rise of low-cost streaming-channel packages. A host of well-heeled digital giants see a market opportunity in targeting consumers — call them cord-cutters, cord-shavers, or cord-nevers — put off by the high price of the traditional MVPD packages that offer 200-plus channels.”

We encourage readers to click here to go to Variety to read the full report.

One Comment

  1. Variety is just another dinosaur at different stage of demise.

    It won’t be saved by any TV Week clicking.

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