Cable Companies Cutting Ads
Cable cutting is now so wide-ranging that cable companies can no longer afford to ignore it. Despite losing millions of customers to cheaper, more flexible, streaming options, some MSOs continued to raise prices and saturate programming with more ads. Lately, however, some video executives are getting the picture.
In an effort to slow the bleeding, some big video providers are not only slashing monthly fees for subscribers, they are also working with networks to cut the number of ads per program. Fox Networks Group has plans to reduce their ads to two minutes per hour by 2020. Likewise, Comcast NBC Universal has already cut advertising in its own programming by 10%.
Finding a Balance
There are still 83 million households that subscribe to cable. Dish, AT&T and several other large providers have seen the importance of getting ahead of the cord cutting trend, and now also offer streaming options to their customers.
Television continues to be an effective medium for advertising. Cable executives simply need to review their model so that it becomes a better experience for their customers.