28 January 2022

The Benefits of Cable Cutting

It appears that people dropping their cable TV providers and getting their entertainment through streaming services is driving the networks to drop the right wing fringe "news" networks.

It's not surprising, MAGAts are probably not hipster cord cutters:

Before One America News Network host Dan Ball finished an interview with guest Jim Jordan this past week, he asked the Ohio Republican congressman for a favor.

“Please put some pressure on AT&T and DirecTV for us,” said Ball, whose “Real America” airs nightly on the right-wing cable channel. “OAN would love to continue broadcasting on that platform and we know for a fact it is all political behind the scenes on why they’re doing that to us.”

Earlier in the week, Ball solicited viewers to send him “dirt” on William E. Kennard, chairman of of the board at DirecTV parent AT&T, including any evidence of marital infidelity. OAN’s 80-year-old founder, tech entrepreneur Robert Herring, also went on camera to plead with viewers to ask other cable and satellite providers in their areas to add the channel to their lineups.

The desperate calls for help — which would be considered unseemly on a traditional cable news outlet — follow DirecTV’s Jan. 15 announcement that it will drop San Diego-based OAN from its service in April. DirecTV, which AT&T spun off last summer, accounts for nearly half of the 35 million homes that can receive OAN on cable or satellite TV. The channel is not broadly distributed enough to be measured by Nielsen.

The loss of DirecTV will deprive the channel of its major source of revenue and casts doubt on the future of the operation, where President Biden’s administration is called a “regime” and concerns about the COVID-19 pandemic are described as hysteria. OAN correspondents have promoted efforts to audit the vote counts in the 2020 election.

OAN is not the only conservative outlet losing distribution. Newsmax, the Boca Raton, Fla.-based channel that is the TV home of former President Trump’s first press secretary, Sean Spicer, was dropped from four cable systems in January after it failed to reach new carriage agreements with those companies.

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The pay TV providers who dropped OAN and Newsmax make the case that it’s not politics that drove their decisions but the upended economics of their business.

Cable and satellite companies are coping with subscriber loss as the emergence of streaming services, such as Netflix, disrupts TV habits. The number of pay TV homes declined by nearly 9% through the first nine months of 2021, according to research firm MoffettNathanson. DirecTV has seen significant subscriber losses as well.

The cost of a cable package is a major factor in the consumers’ decision to cut the cord, which means service providers are under pressure not to raise rates. Cable bills creep up when the cost to carry programming is passed along to consumers.

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Morrow said carriage decisions on channels are based on “industry trends such as secular decline, programming price increases, competitive offerings with lower price points, our competitors’ offers, and consumers’ desire to have more narrow bundles.”

Breezeline, the Quincy, Mass.-based cable company formerly known as Atlantic Broadband, took a similar stance in its comment on its decision to part with Newsmax.

“While we worked in good faith to negotiate a fair agreement, Newsmax insisted on terms and conditions that we could not accept,” said Andrew Walton, a spokesperson for Breezeline. “The decision was not related in any way to the content on the network.”

Walton added that Newsmax’s demands for a higher fee “would have resulted in increased TV fees for all Breezeline customers — for a channel that is free online to other viewers.”

To quote Salvatore Tessio, "It was only business."

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