Yet another research document has revealed that US homes are investigating alternative methods of TV deliver, with cable TV as has been the current case the whipping boy for this shift.
According to the Television Bureau of Advertising (TVB), the not-for-profit trade association of America’s commercial broadcast TV industry, a record number of American TV households are receiving video programming via an alternate delivery system (ADS), mostly via direct broadcast satellite (DBS), with penetration hitting 30.9% in May 2011, an all-time high that is up from 30.3% a year earlier.
Drilling deeper in the TVB analysis of Nielsen Media Research data for May 2011, wired-cable penetration declined to a 21-year low to 60.6% in May 2011 from 61.1% in May 2010. Such a low penetration was last reached in November 1989.
“It would appear that the cut-the-cord phenomenon is real, and that has implications for the advertising community. Advertisers who buy cable locally need to know that local wired cable systems’ ability to deliver commercials continues to erode,” said Steve Lanzano, TVB President.
“In fact, in quite a few markets, a majority of those paying for video programming are now getting that programming via ADS rather than from a wired-cable system. Local cable commercials are not seen in ADS homes, and so local advertisers need to deduct the ADS percentage of the audience if they are included in the cable systems’ submissions.”