TV execs are twitching as they note a growing trend among subscribers to drop television but keep high-speed Internet access for watching TV programming. Although the current number of cord cutting households is low, it does appear to be a growing trend. About one in ten (11%) U.S. households do not subscribe to cable, digital or satellite TV, but do have high-speed Internet, according to GfK MRI’s Fall 2011 Survey of the American Consumer.

Nearly one-half (44%) of consumers living in Cord Cutter households also live in cell-only households. That percent has increased from 8% in the Fall 2010 Survey. Even though the vast majority of households (80%) still buy cable, digital or satellite TV, the increase in cord cutting households indicates that this is a phenomenon programmers and cable MSOs are wise to watch closely, since it may impact revenue from monthly cable subscriptions.

TV and Internet use

It seems safe to say that most, if not all, consumers living in households without TV but with high-speed Internet watch television online. Consumers who live in cord cutting households are heavy online users, indexing 163 for being in the highest Internet quintile. They also are more likely than typical adults to use the Internet for viewing movies and TV programs:

• Watched a movie online — Index 271
• Downloaded a TV program — Index 256
• Downloaded a movie — Index 250
• Watched a TV program online — Index 242

More telling, they index 297 for visiting the online video service Hulu.com in the last 30 days.

Although frugality is surely part of the impetus to become a Cord Cutter (who likes to pay for content when they can get it for free?), it may not be the whole story. Cord Cutters might also be motivated by portability and the “wow factor” of new technology. For instance, they have an index of 192 for having watched a movie, TV program or other video on their mobile phones in the last 30 days.

Who cuts the cord?

Cord Cutters are more likely than adults, as a whole, to be young, Asian, well educated, live in households with above average incomes and reside in the Pacific marketing region.

Freelance writer Joanne Zornow has been editing Gfk MRI’s client newsletter, The Source, since 1992. This story originally appeared in the Dec 2011 issue.

One of my favorite series this summer is Current TV’s “50 Documentaries to See Before You Die.” Hosted by Morgan Spurlock (Director/writer/star of “Supersize Me”), the series counts down the top documentaries of the last 25 years. Documentarians like Michael Moore and Penelope Spheeris, as well as an expert panel of film industry pros and critics, discuss the impact of the films and tell the stories of how they were made. At this writing they haven’t revealed the top ten yet. I suggest you all watch the series and the final ten next week. There’s a lot we can learn to apply to our own content.

First of all: Passion. All of the documentarians exuded passion for their subjects. No matter whether the subject was Heavy Metal, the rise of extreme skateboarding, or the truth about the Vietnam War, every filmaker believed passionately that their story was one that had to be told.

Second: Go where the story takes you. Errol Morris never thought he’d get a 20 hour interview with Robert MacNamara, which became the center of “The Fog of War.” Andrew Jarecki started to make a film about children’s entertainers in New York and ended up making “Capturing the Friedmans.” Go where the story takes you, and don’t be afraid to tell the truth.

Third: Make it happen. Every project had its own troubles, ranging from a lack of funds, lack of historical footage, inexperience of the filmakers. They didn’t let the roadblocks stop them. The documentarians figured out a way to incorporate the roadblocks in the story or they worked around them. The passion they had for their subjects wouldn’t allow them to give up.

So find a story that fires your passion. Go where that story takes you. Make it happen. In the words of M.B. Ray:

“Begin doing what you want to do now. We are not living in eternity. We have only this moment, sparkling like a star in our hand — and melting like a snow flake.”

Peter M. Gordon is a writer, public speaker, and media consultant in Orlando, FL. This article was originally posted at MyProgramIdea.blogspot.com.

The word schadenfreude, defined as deriving pleasure from the misfortunes of others,” may be unfamiliar to you unless you speak German or have seen the Broadway Musical Avenue Q. But if you are a fan of shock-jock morning radio, you are probably familiar with the concept.

The syndicated “Elvis Duran and the Morning Show” beamed from New York’s Z-100 features a regular segment called Phone Taps where a friend or relative of a listener pranks the unsuspecting ex-friend and current relative-in-exile. In a segment broadcast today on Miami’s Y-100 WHYI, a man called his fiancee at work to tell her that her new car, left running with the keys in it, had been stolen while he stopped off to grab a power shake. She freaked. Her panic was exacerbated when the morning show host, masquerading as the thief, dialed in from her boyfriend’s stolen Blackberry and asked how much she was willing to pay to get her car back.

She wasn’t happy. “Why would you do this to me?” she asked the boyfriend after the prank was revealed.

Throughout the five minute segment I kept thinking, “ok, what’s funny about this?” until I realized it wasn’t supposed to be funny. It was supposed to be schadenfreude.

Elvis Duran’s winning formula in morning drive has won him fans and ratings in 27 markets. The Phone Tap segment even spawned a short-lived four-episode reality show called Phowned on Spike TV last December.  WHTZ-FM (aka Z-100) consistently ranks in the top New York radio stations on the strength on the Elvis Duran show.

Having spent the beginning of my career working in radio, I have some appreciation for the accomplishments of Mr. Duran. Top of the ratings heap in New York with clearances in major markets is no mean feat. I also realize the golden age of radio has long since passed — it was long ago dead and buried by the time I spent five years in the business 35 years ago. (Eight months was spent as Producton Manager of America’s first disco radio station. Yes, that was a long time ago) But after hearing the stolen car/not really stolen phony phone call, I have to ask: “That’s Entertainment?”

It’s pretty clear that this Phone Tap did irreparable harm to this relationship. I’m no marriage counselor, but when your fiancee screams into the phone “why would you do this to me?” across 27 markets during morning drive, it’s likely that there are some rough times ahead for you and the missus. (although you could argue that this Phone Tap was The WTF Intervention this relationship really needed, and without it these guys were going to implode sooner or later).

What I’m not sure of is why people enjoy this. Are there really enough Germans listening to radio in morning drive to make Elvis a winner?

Don’t blame the Germans. They might get credit for creating the word. But it takes American ingenuity to turn other people’s pain into morning drive gain.

Two questions for your consideration: “What are the networks looking for?” I also ask cable networks a similar question — “What shows do you want to air?”

It’s tough for most networks to answer that question except in the most general terms. Even if you have aimed your network at a particular audience segment — for example, Women 25-49, or men 35+ with average incomes of $75,000 per year — your audience is always changing and evolving. Women ages 25-49 do share similar interests in products, for example, but they don’t all buy the exact same products. Each member of that group is a person making their own individual choices. Every year, fashions change, tastes change, and a network needs to evolve with their audience or lost them.

While network executives can usually articulate what sorts of shows they will consider, they are also willing to push the envelope if that means they can add a hit show. For example, MTV started as Music Television. When was the last time you saw music videos on MTV in prime time? The network changed, because their audience’s taste changed

So the answer to the question, “what do networks want?” is simple. They want hits. But no one really knows for sure where the next hit show is coming from. So in my opinion you shouldn’t spend a lot of time tailoring your idea for a specific network in the beginning. Create as strong an ida as possible. Prove to the network that you have a potential hit for them. Then what will the networks want? They will want you.

Peter M. Gordon is a writer, public speaker, and media consultant in Orlando, FL. This article was originally posted at MyProgramIdea.blogspot.com.

Once serious but lately comedic actor Leslie Nielsen died last weekend at age 84. Famous for his Airplane and Naked Gun appearances, he once tried to compete with the other Nielsen — according to this 1998 April Fool’s article.

Detective Frank Drebin, we’re going to miss you.

by Dave Zornow

April 1, 1998 — Actor Leslie Nielsen threw his hat into the cable ratings business with the purchase of the bankrupt “Psychic Friends Network.” Although cable analysts questioned the move (One unnamed source wondered, “How well can these psychics see the future if they couldn’t even predict their own bankruptcy? And if they are really psychic, why do they always have to ask my name when I call?”), the actor seemed determined to buy his way into a new business now that his acting career with O.J. is over.

Nielsen has decided to relaunch and reposition Psychic Friends in the audience measurement business. The new venture will now be known as “Nielsen Medium Research.”

Actor Nielsen plans a number of initiatives to make Nielsen Medium Research an industry leader. For example, to emphasize the importance of customer service at his new company, Nielsen Medium Research will include a coupon with each ratings pocketpiece good for ten free minutes with a telephone psychic to consult on upcoming buys, career moves and what to wear on your next date. (Offer void where prohibited.)

The new Nielsen also plans to give the other Nielsen more competition on the technology front. Hoping to capitalize on innovations in advanced digital video sampling, Nielsen’s Nielsen will introduce a new household meter which will measure, store and identify the concentration of purple in each video image. “Each program has its own digital pattern, just like any two random snowflakes in a blizzard or crackerjack kernels in a box. By measuring the Purple Percentage of each video image we can identify every program in a foolproof, digitally-efficient, state-of-the-art, low cost and competitive way,” Nielsen says. The new technology, which will be dubbed the Nielsen Purple Meter, will be available next quarter. Or the one after that, for sure.

Video engineers doubt the Nielsen Purple Meter will ever get out of the lab. Initial field test lab show the Purple Meter consistently overstating viewing to certain Oprah Winfrey movies (“The Color Purple”) and Woody Allen titles (“The Purple Rose of Cairo”).

Copyright 2003, Dave Zornow. Reposted from TNG Research

Comcast announced in late June that they will launch a version of their VOD channel, Fearnet, as a linear, ad-supported cable network. Fearnet’s VOD service is available in 28 million homes, and the linear, ad supported channel will expand its reach. Presumably, the ads and license fees will bring in more money, since the VOD service is available free to digital subscribers. This is a significant development. When Comcast launched Fearnet on Halloween 2006 they hailed the VOD-only channel as a new paradigm in cable service. The days of the linear network were numbered, since consumers wanted to consume their video on demand. Fearnet would be the first in a series of new VOD networks.

A funny thing happened on the way to this future. Linear cable networks continued to launch — news channels, local sports channels, foreign language channels, HD versions of current channels. There are groups looking for funding for several more. Instead of fading away, networks with limited distribution continued to expand. Satellite services like Direct TV and DISH made more networks available to homes and cable systems competed by adding more channels and creating their own proprietary channels. The VOD interfaces that cable networks put in homes turned out to require several clicks to find specific shows. Most consumers didn’t want to work that hard. It was so much easier just to see what was currently on your favorite channels than hunt for specific VOD programs.

Comcast further demonstrated the importance of networks and content last year when they bought NBC for its popular cable channels like USA, and the most old-fashioned dinosaur of them all– a broadcast network. Although an increasing number of people time shift their viewing of shows, they still rely upon networks to schedule programs at specific times so they can record them.

What does this mean for your program idea? It means that cable networks in the U.S. and around the world will be a viable market for the foreseeable future. Selling a program to a cable channel remains a good way to make money and increase your program’s visibility. That doesn’t mean you have to wait for a network to buy your show before you create some video for your web site. It does mean that you should consider a network sale as a viable part of your business plan. And if you’re dreaming of creating a new linear network don’t give up hope. It looks like they will be around for awhile.

Peter M. Gordon is a writer, public speaker, and media consultant in Orlando, FL.

As the Tour de France prepares to climb the Pyrenees, ratings are up while 2010 TDF numbers are down.

Crashes and injuries have forced 20 cyclists to drop out leaving only 178 riders in the race.  But riders’ pain seems to be Versus’ gain. Live morning race coverage on the channel has averaged 501,000 viewers and a .5 household rating through Stage 9 on July 13 — the best start for race coverage in the network’s 10-year history with the Tour.

The cable network also says unique users on its Tour de France Web site in the U.S. have increased 15% overall, while pages per user are up 22%. Unique users’ average time on the site is currently running 13% higher than a year ago.

Versus, like all media companies in big events, is touting its three-screen approach to this competition. In addition to cable and internet coverage, Versus is offering an iPhone app for its mobile component. The Tour app will offer video highlights, standings and route maps.

The three-screen approach just reached a new goal for media conglomerates to strive for with ESPN’s coverage of soccer’s World Cup. ESPN estimated that 132 million persons aged 2+ had consumed World Cup content in the U.S. across all of ESPN’s platforms. ESPN is promoting the notion of 3 with the new website, ESPN3.com. This website is all about watching live streaming sports online.

Sources: Versus, TV By The Numbers 7/7/2010
See also:

• re:Cycling TV 7/12/2010
• MediaPost 7/12/2010
• Rating The Race & The Riders 7/2/2010

Photo: Quickstep’s Sylvain CHAVANEL, Stage 7 on 7/10/2010. Credit:  ©PresseSports/B.Papon

Justin Halpern, whose twitter feed, “S*** my Dad Says”, will become a sitcom on CBS’ fall schedule. There’s a lot we can learn from Justin’s story.

Justin was an aspiring screenwriter who moved back home to San Diego in his late twenties after his screenplay did not become a movie. Although he had a job writing for maxim.com, his dream of making it in Hollywood was dead. While living at home he started writing down his father’s words of wisdom and posting them on Twitter (119 posts so far). His dad’s witty and sometimes profane thoughts became very popular, and eventually a production company came calling.

Justin’s story shows the extraordinary opportunity you have to get your idea directly to the audience. Twitter, Facebook, you tube, and other web outlets give you the chance to tell your story. If your work strikes a chord out there, you may be able to move it to the more traditional media that can pay you significant money for it.

Here are two lessons from Justin’s story that are particularly important for you. First, create something. If Justin hadn’t written down his father’s words in the first place, nothing would have happened. Don’t wait for everything to be perfect: just get going.

Second, create for multiple platforms. S*** my Dad Says” is a twitter idea that became a tv sitcom. Do you have a movie idea that can also be a novel? Try writing the novel first. Perhaps you’ll find a publisher, but you can also self-publish. If you have a popular novel, the film and television rights will pay you more.

Whatever you’re creating, get started today. Moving from conception to creation to publication can take months or years. The sooner you start, the sooner you’ll get done.

Peter M. Gordon is a writer, public speaker, and media consultant in Orlando, FL.

How long does it take for a format or technology to migrate from one medium to another?  Take wide-screen pictures for instance.  In the early 1950s they were in your neighborhood movie house.  Only a half-century later, wide-screen TVs were on display at your local electronics emporium.  I have a feeling 3D is going to move a lot faster than that.

3D was around in the early 1950s too, but not seriously.  Used mostly in low-budget novelty films, audiences considered it a joke and it soon vanished.  One of the first was Bwana Devil, a jungle epic with spears thrown directly at the audience for shock value.  It was perhaps best known for its ad slogan “A lion in your lap.”

This time the studios are very serious about 3D.  They’ve discovered a gold mine.  Witness Avatar and Alice in Wonderland.  And the TV set makers aren’t sleeping through it.  They’re pushing their own 3D systems.

The cinema 3D technology is essentially an improved version of the 1950s spear-tossing films in that the glasses worn by the audience are “passive.” They contain a lens material that filters out the portion if the picture each eye is not supposed to see.  The new TV systems tend to use “active” glasses, mechanical devices that open and close shutters rapidly to admit the proper images for each eye.

How long before 3D is an everyday item for the home?  I’m guessing less than 10 years.  Expect the consumer electronics marketers to position it as necessary for “true HDTV.”  That lion is coming to your living room.  Don’t let it scratch-up your furniture.

Paul Rule is President of Marquest Media Research.

The upcoming Academy Awards broadcast on ABC is poised to do well in the ratings. The controversial decision to expand the Best Picture category from 5 to 10 films might frustrate purists, but it should also draw additional viewers.

Oscar ratings tend to fluctuate a bit from year to year, often based on whether higher- or lower-profile films receive the most attention. It’s no coincidence that the lowest rated broadcasts tend to be in years when less popular movies dominate the Best Picture nominees.

Over the past 10 years, two of the lowest rated broadcasts were the last two. Last year’s winner, Slumdog Millionaire, was up against Benjamin Button, Frost/Nixon, Milk, and The Reader – all quality movies, but not exactly major box office hits. Likewise, the previous year had No Country for Old Men facing off against Juno, Atonement, Michael Clayton, and There Will Be Blood.

Had last year’s nominees also included Dark Night, ratings undoubtedly would have been higher. If there were five nominees this year, they might have been The Hurt Locker, Inglourious Basterds, Precious, A Serious Man, and An Education. How many would have tuned in? Making room for crowd pleasers like Avatar, District 9, Up, The Blind Side, and Up in the Air will defintitely draw in more viewers. Probably most people that are fairly regular moviegoers have seen at least one or two of these. Now some might say Avatar would have made it anyway. But given that the critical and moviegoer blockbuster, Dark Night didn’t make the cut last year, I’m not sure Avatar would have this year.

Another factor that may contribute to high ratings is that there seems to be a renewed national appetite for big event programming. Recent strong ratings for the Super Bowl, some high-profile award shows, and the Winter Olympics seem to indicate a trend. Perhaps in this economy, more people are staying home and watching television. Maybe families are searching for primetime shows they can watch together (roughly 80% of homes only have one TV turned on during primetime). Or maybe social networks such as Facebook and Twitter are enabling more real-time shared viewing experiences, which the fragmentation of TV viewing in a 200+ channel environment has made all too rare.

As usual, the Academy Awards will continue to be an excellent platform for advertisers. It has significantly less commercial clutter than the typical primetime series. Last year, only 18% of the broadcast contained commercials (national, local, promos, and billboards). The average regularly scheduled primetime series, by comparison, has roughly 28% devoted to commercials/promos.

As I mentioned in my Winter Olympics analysis, Nielsen has a little known rule that it only measures national audiences up to the final national commercial. Last year, the final half hour of the Academy Awards, when three of the four major awards – Best Actress, Actor, and Picture – were handed out, was not rated by Nielsen.

The last national commercial was at 11:25pm. Any subsequent programming was not included in the program’s average ratings. ABC tries to keep viewers tuned in for a three and a half hour broadcast by holding back the biggest awards until the end, and then Nielsen doesn’t report most of it. If they moved these three awards to 10:30pm instead of 11:30pm, national ratings would undoubtedly improve.

A 1996 and 2007 recipient of Ad Age’s Media Maven award, Steve Sternberg has more than 20 years of experience analyzing and reporting on television and programming and video viewing trends for major advertising/media agencies. Read more from Steve at The Sternberg Report.