Barclays analyst Kannan Venkateshwar says that after a second quarter that saw a high level of pay-TV subscriber losses, the cord cutting phenomenon is far from done.
In a report, Venkateshwar estimates that 31 million homes could cut or shave the cord over the next decade, with some individual networks declining at an even faster pace.
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Internet-delivered bundles—such as Dish Network’s ’s Sling TV, DirecTV Now or YouTube TV—could gain 17 million subscribers over the next 10 years.
But the financial impact of the loss of subs from high-priced traditional pay TV to cheaper, skinnier online bundles could be a $13 billion decline in affiliate fees over the decade.
“In our opinion, media companies are looking at all forms of distribution from the same narrow lens of affiliate fees,” Venkateshwar said. "However, there are significant differences in emerging OTT business models and incentives for new entrants vs. legacy distribution."
Read more at broadcastingcable.com.