Networks Are Fighting Cord Cutters the Exact Wrong Way

Networks Are Fighting

Cord CuttersThe ExactWrong Way

The Motley Fool

Image source: Flickr/Alan Kilm

The Pay-TV industry lostapproximately subscribers last quarter.

566,000

Source: Reuters/MoffettNathanson

ESPNNickelodeonTNTTBSA+E

Down 7.2%Subscriber numbers since 2011

Down 6.9%Down 6.1%Down 5.7%Down 5.2%

Source: Wall Street Journal

As a result, prominentcable networks are losingsubscribers as well.

Walt Disneyreported adsales at ESPN

during thesecond quarter.

Dropped 3%

Image Source: Flickr/USAG-HumphreysSource: Disney

Ad sales at Viacom

last quarter.Dropped 9%

Image Source: NickelodeonSource: Viacom

AMC also saw amaterial decreasein ad revenue.

Source: AMC NetworksImage Source: AMC Networks

To counteractthe decline,networkshave taken to

ad stuffing

Image Source: Flickr/Michael

Ad StuffingThe act of extendingcommercial breaks to squeezemore ads in per TV episode.Can also involve speeding upepisodes to include morecommercial time.

verb

AMC's ad load

last quarter.grew 10%

Source: Sanford Bernstein/AdAgeImage Source: AMC Networks

Nearly every other networkgroup increased ad load as well.

ViacomA+ETime WarnerDisney

Up 7%Up 5%

Up 4%Up 3%

Source: Sanford Bernstein/AdAge

But this solution is only afix for theand

short-termunsustainable.

Not only is there a limitto the number of adsnetworks can stuff into atime-slot

ads ads ads adsads ads ads adsads ads ads adsads ads ads adsads ads ads ads

Showing more commercialsonly drives viewers toseek commercial-freealternatives like ...

Showing more commercialsonly drives viewers toseek commercial-freealternatives like ...

Streaming videoservices.

Long-term this strategyonlythe core problem ofdeclining ratings.

exacerbates

Image Source: Netflix

Until management offersamany of these networkswill continue to seead revenue andsubscriptions suffer.

real solution

3 Companies Poised to When Cable Dies

ExplodeCable is dying. And there are 3 stocks that arepoised to explode when this faltering $2.2 trillionindustry finally bites the dust. Just like newspaperpublishers, telephone utilities, stockbrokers,record companies, bookstores, travel agencies,and big box retailers did when the Internet sweptaway their business models.And when cable falters, you don't want to missout on these 3 companies that are positioned tobenefit. Click here for their names.Hint: They're not the ones you'd think!