A new report from Nielsen shows that the number of U.S. households that are ditching their cable providers is on the rise. Though still only 5 percent of TV households, the number of homes with broadband Internet but only free, broadcast TV has risen 22.8 percent in the last year.
Within this set of cable-free households, studies show broadband users watching twice as much streaming video than the average home and half as much TV. Nielsen says that not all of these Internet streaming homes are “cord cutters,” or ex-cable customers — some may be longstanding Internet-only homes that have upgraded their subscriptions to be able to stream.
The Nielsen report also shows that these broadband-using, broadcast-only homes stream about 11.2 minutes of video per day compared to the average household, which streams an average of 5 minutes per day. TechCrunch notes that neither group is watching enough streaming video for it to equate to a single sitcom, pointing to the possibility that the Internet may and the Internet may not just be a new medium over which TV can travel, but an alternative to TV-watching entirely.
Households with broadband but no cable or satellite spent 122.6 minutes per day watching TV, while those with some sort of TV subscription service watched 265.5 minutes, more than double. Customers are increasingly making Internet connectivity a priority. with 75.3 percent of Americans paying for broadband, up from 70.9 percent last year. However, 90.4 percent of households still pay for cable, telephone company-provided TV, or satellite. Homes with both paid TV and broadband increased 5.5 percent since last year.
Here’s how cable and satellite stocks closed the week:
DIRECTV (NASDAQ:DTV): DTV shares recently traded at $45.51, down $0.05, or 0.11%. They have traded in a 52-week range of $39.82 to $53.40. Volume today was 4,112,933 shares versus a 3-month average volume of 5,986,940 shares. The company’s trailing P/E is 14.19, while trailing earnings are $3.21 per share.
Dish Network Corp. (NASDAQ:DISH): DISH shares recently traded at $28.50, down $0.12, or 0.42%. They have traded in a 52-week range of $20.89 to $32.56. Volume today was 1,696,129 shares versus a 3-month average volume of 3,150,970 shares. The company’s trailing P/E is 8.74, while trailing earnings are $3.26 per share.
Time Warner Cable Inc. (NYSE:TWC): TWC shares recently traded at $75.47, down $0.91, or 1.19%. They have traded in a 52-week range of $57.15 to $80.86. Volume today was 1,457,218 shares versus a 3-month average volume of 2,235,880 shares. The company’s trailing P/E is 15.19, while trailing earnings are $4.97 per share.
Comcast Corporation (NASDAQ:CMCSA): CMCSA shares recently traded at $27.17, down $0.29, or 1.06%. They have traded in a 52-week range of $19.19 to $27.50. Volume today was 10,705,194 shares versus a 3-month average volume of 15,428,400 shares. The company’s trailing P/E is 19.55, while trailing earnings are $1.39 per share.
Cablevision Systems Corporation (NYSE:CVC): CVC shares recently traded at $14.82, down $0.42, or 2.76%. They have traded in a 52-week range of $11.57 to $38.08. Volume today was 2,784,557 shares versus a 3-month average volume of 3,447,240 shares. The company’s trailing P/E is 12.42, while trailing earnings are $1.19 per share.
To contact the reporter on this story: Ashley Cloninger at email@example.com
To contact the editor responsible for this story: Damien Hoffman at firstname.lastname@example.org