This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

'Cord Cutting' for TV, Phone Still Just Myth

NEW YORK (TheStreet) -- Cable customers are not cutting the cord in favor of streaming services in great numbers.

Despite constant fears in the cable industry of cord cutting and great hope among potential disruptors, little evidence of that happening was cited by industry leaders speaking this week at "Streaming Media East" online video industry conference in New York.

The closest was data from Jim Funk, VP of streaming broadband box maker Roku, which asks customers after they buy the box whether they plan to scale back cable services. Funk said 15%-20% of customers said they would but he noted that customers did not cite Roku as the reason. The $99 Roku box allows users to access Amazon video, Netflix and other online services on their traditional TV's.

Cord cutting would be a huge victory for companies with streaming products like Microsoft (MSFT - Get Report), Sony (SNE - Get Report), Apple (AAPL - Get Report), Netflix (NFLX - Get Report) , Amazon (AMZN - Get Report)and Google's (GOOG - Get Report) YouTube. By disrupting the traditional cable model, they aim to get a slice of the multibillion-dollar cable pie sliced up by Comcast (CMCSA), Cablevision (CVC), Time Warner Cable (TWX - Get Report) and others.

Last fall, Verizon (VZ) CEO Ivan Seidenberg dismissed those who call cord cutting myth and said young people would not pay for huge bundles in the future. Industry leaders from Starz, MTV (VIA), Roku, Boxee, News Corp (NWS), Sezmi and HBO all agreed younger customers will consume and pay for TV in a different manner, but there was one thing that would keep them from cutting the cord -- the cord is also the broadband connection. So-called "cord-trimming" where customers pay for cable broadband but drop the TV service may be the result, which is closer to Seidenberg's view.

--Written by Bill McCandless at the "Streaming Media East" conference in New York

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $110.38 0.00%
AMZN $532.54 0.00%
GOOG $626.91 0.00%
NFLX $106.11 0.00%
MSFT $45.57 0.00%


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs