Consumer Goods: Cable’s Not Dead – Where Cable Companies Are Thriving *** INDUSTRY FOCUS *** | Summary and Q&A

TL;DR

Cord cutting is not as widespread as initially predicted, with only a small number of cord cutters in comparison to total cable subscribers. Additionally, while streaming services offer good programming, they lack the variety and convenience of traditional cable packages.

Key Insights

• 🪗 Cord cutting has not become as popular as anticipated, with the number of cord cutters remaining relatively small.
• 👋 Streaming services offer good programming, but they do not provide the same convenience and variety as cable TV.
• 🚠 Cable providers are not significantly affected by cord cutting due to gains in broadband subscriptions.
• 🚠 The future of cable TV may involve offering more flexible and affordable packages to attract consumers.
• 👻 The FCC's spectrum auction allows television companies to sell their spectrum or move to a better frequency range for better signal quality.
• 🐕‍🦺 Comcast and other cable providers may consider offering wifi-based phone services or leveraging their spectrum in partnerships with other carriers.

Transcript

Sean O'Reilly: We're talking cord cutting and spectrum actions on this consumer goods edition of Industry Focus. Greetings, Fools! Sean O'Reilly here at Fool headquarters in Alexandria, Virginia. It is Tuesday, March 29th, 2016, and joining me via Skype is Motley Fool contributor, Dan Kline. Mr. Kline, how are you? Daniel Kline: I'm doing great, ho... Read More

Questions & Answers

Q: Why hasn't cord cutting become more popular?

Cord cutting has not become widespread due to several reasons, including limited programming options, the need to switch between multiple devices, and the convenience of having all channels in one place.

Q: Are there any alternatives to cord cutting?

Yes, there are alternatives to cord cutting, such as using HD antennas to access network channels and cable providers incorporating streaming services like Netflix into their platforms.

Q: What are the implications for cable providers?

Cable providers are not significantly affected by cord cutting, as any customer losses are offset by gains in broadband subscriptions. Additionally, the decline in cable subscriptions is not large enough to warrant major concern.

Q: How do wireless carriers like AT&T, Verizon, and T-Mobile fit into this trend?

Wireless carriers are not directly impacted by cord cutting, but they play a role in providing internet access for streaming services. T-Mobile and Sprint offer more affordable plans compared to AT&T and Verizon.

Summary & Key Takeaways

• Cord cutting, the act of cancelling cable subscriptions in favor of streaming services, has not become as popular as initially anticipated.

• The number of cord cutters has not significantly increased, with only a small percentage of cable subscribers opting to cancel their subscriptions.

• Streaming services like Netflix and Hulu offer good programming, but lack the convenience and variety of traditional cable packages.