(Naked) Canary in a Coalmine?
August 10, 2011
Time Warner has reported that its video on demand service was down again in the 2nd quarter, off 13.5%. They blame the increasing amount of free online options for consumers. In particular, some have speculated <http://www.dmwmedia.com/news/2011/08/01/time-warner-cable-free-porn-cuts-in
to-revenue/> that the increasing amount of free online porn is cutting into the lucrative adult film libraries that Time Warner - and other services - offers.
Although there's ambiguity about the exact rate of cord cutting (consumers transitioning from cable and satellite services to online services), it's clear that the number of alternative sources for any kind of video programming are proliferating. Chief among those online alternatives:
Netflix is steering more towards online streaming, Hulu is up for sale, and DISH Network is trying to get into the streaming game with its purchase of Blockbuster.