I was caught off guard recently when I reported a story about password sharing among young adults (SportsBusiness Journal, Oct. 26-Nov. 1). It seemed like an easy trend story, especially as the cable industry sheds subscribers. Password sharing for TV Everywhere streams has to be a main culprit, right?
After all, Charter President and CEO Tom Rutledge, during his third-quarter conference call last month, cited password sharing on college campuses as a problem the cable TV industry needs to face.
But every one of my sources said TV Everywhere viewing is still so small that password sharing is not having any impact at all. In fact, all four executives on a distribution panel at our Sports Media & Technology conference late last month — representing Time Warner, Verizon, Tribune and Tennis Channel — said they are not concerned about it right now.
“We don’t think it’s that big of an issue,” said Melinda Witmer, Time Warner Cable’s executive vice president and chief video and content officer. “The usage of TV Everywhere is growing, but it’s still small. As it gets bigger, that may become more of a conversation, but right now, it’s not.”
Dana Zimmer, president of distribution for Tribune Media Co., agreed.
“We’re taking a look at all of this,” Zimmer said, “but I think for right now, we don’t see it as a threat to the industry, at least not today.”
What makes these answers so interesting is that earlier in the panel, the four panelists also were unanimous in describing cord cutting as a real threat. They believe that people are cutting the cord for different reasons, with Witmer citing the presence of more video alternatives outside of the cable TV bundle and a consumer desire to purchase smaller bundles of programming.
“Cord cutting is happening,” said Ben Grad, Verizon’s executive director of content strategy and acquisition. “It is happening a little bit more quickly now. It is real.”
