[opendtv] Re: Bottom Feeders?

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Tue, 1 Feb 2011 07:54:25 -0500

At 4:42 PM -0600 1/31/11, Manfredi, Albert E wrote:
Craig Birkmaier wrote:

[On HD ads]

 Who's really watching? That is, who are the advertisers trying to reach?
 What are they watching, and on what kind of TV?

Are you saying that ads transmitted by OTA broadcasters don't also reach the MVPD audiences?

I'm not saying anything. I'm asking some targeted questions that may cast some light on the reasons why SD still dominates the ads we see.

Obviously the MVPD audience sees broadcast ads when they watch a local TV station. The total broadcast audience (MVPD and OTA) is now less than 40% of the prime time audience, and much lower for other day parts. A significant percentage of the broadcast audience is using antennas, but the largest segment is MVPD subscribers.

The questions seek to understand the economic demographics of the broadcast audience and the percentage of this audience using legacy SD receivers versus new HD capable receivers.

And there is another group here that is worth considering. My daughter's new in-laws have a new widescreen TV but still subscribe only to analog cable (no antenna). And just for the record, they are NOT bottom feeders...

;-)

Apparently this is still a large group:
http://www.ncta.com/Statistics.aspx

Operating Metrics (as of Sept. 2010)
Basic Video Customers    60.4 M
Digital Video Customers  44.4 M
High Speed Internet Customers (includes commercial) 43.8 M
Cable Phone Customers  23.5 M

So at least 15 million MVPD subscribers only receive SD channels. A percentage of these customers may be able to access the digital HD signals of the local broadcast stations if the bits are in the clear, and some may use an antenna to receive HD.

But it is clear that there is still a very sizable


 Any thoughts?

Sure. OTA broadcast channels are still watched by a significant percenatge of MVPD subscribers. And some are also cutting the cord and going back to OTA TV and Internet TV.

Most of the data on cord cutters suggests that this is an economic decision - i.e. they can no longer afford to pay for their TV fix. Given the high unemployment and under-employment rates, it seems that the size of the group we might agree to call "bottom feeders" may be growing.

There is also some evidence that many illegals went home when the economy tumbled - these people were most likely to use broadcast TV with a cheap legacy receiver. This is a significant segment of the "antenna" audience, given the success of Spanish language broadcast channels, especially on the west coast and larger cities.

Regards
Craig




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