According to a TVB analysis of Nielsen Media Research data for May, while wired-cable penetration has declined to a 21-year low, a record number of American TV households are receiving video programming via an alternate delivery system (ADS) — mostly via direct broadcast satellite. The top three DMAs for ADS penetration include Greenville-Spartanburg-Asheville, Birmingham and Albuquerque-Santa Fe.
According to Nielsen NTI data, national ADS penetration hit 30.9% last month, an all-time high that’s up from 30.3% in May 2010. Wired-cable penetration, on the other hand, declined to 60.6% in May 2011 from 61.1% in May 2010—the last time wired-cable penetration had been any lower was in November 1989.
“It would appear that the cut-the-cord phenomenon is real, and that has implications for the advertising community. Advertisers who buy cable locally need to know that local wired cable systems’ ability to deliver commercials continues to erode,” said Steve Lanzano, TVB President. “In fact, in quite a few markets, a majority of those paying for video programming are now getting that programming via ADS rather than from a wired-cable system. Local cable commercials are not seen in ADS homes, and so local advertisers need to deduct the ADS percentage of the audience if they are included in the cable systems’ submissions.”
Top 10 ADS levels in markets 1-50
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Television HH |
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DMA Rank |
DMA Name |
% Wired Cable and/or ADS |
% Wired Cable |
% ADS |
|
36 |
Greenvll-Spart-Ashevll-And |
92.4 |
45.9 |
47.0 |
|
40 |
Birmingham (Ann and Tusc) |
93.5 |
47.8 |
46.2 |
|
44 |
Albuquerque-Santa Fe |
83.0 |
38.0 |
45.3 |
|
16 |
Denver |
89.5 |
48.2 |
41.8 |
|
50 |
Memphis |
90.6 |
49.6 |
41.5 |
|
20 |
Sacramnto-Stkton-Modesto |
90.9 |
51.5 |
40.4 |
|
12 |
Phoenix (Prescott) |
86.3 |
46.6 |
40.3 |
|
21 |
St. Louis |
90.1 |
50.7 |
39.8 |
|
31 |
Salt Lake City |
82.2 |
43.3 |
39.3 |
|
8 |
Atlanta |
94.1 |
56.0 |
38.8 |
RBR-TVBR observation: According to a recent Harris Poll, one in five U.S. adults have cut back on cable TV service (22%) in the past six months. While that may not mean they’ve cut the cord completely, a growing amount are going with iPTV programming delivery, such as via the Wii system sitting on their entertainment centers via Netflix.
