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2011/11/29

Cord Avoiders a New Problem for Video Providers - Cable Spotlight

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November 28, 2011

Cord Avoiders a New Problem for Video Providers




By Gary Kim, Contributing Editor

About 200,000 fewer subscribers will ante up for paid TV services in 2012, analysts at Credit Suisse predict. In large part, the modest contraction can be blamed on weak formation of new households and a growing number of new households that are avoiding subscription TV subscriptions altogether.

More than "cord cutting," the abandonment of video services by customers that used to buy such services, the new weakness is among people who would otherwise have been starting their own households or becoming potential consumers for the first time.

The Credit Suisse analysts emphasized that they remain optimistic on cable and satellite sector businesses, but see the developing new problem as "cord-avoiders," households that are relying on video alternatives in an arguably new way... Read More

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