The TV networks are hurting because their most profitable customers – viewers of pornography – just aren’t watching enough. Sam Schechner and Jessica E. Vascellaro report for the Wall Street Journal:
Cable and satellite television companies have a pornography problem: Their customers aren’t watching enough of it.
Companies’ revenue from highly profitable adult video-on-demand and pay-per-view services has been slipping, as the genre’s consumers spend more time browsing porn on the Web.
The trend is prompting TV executives to pull back the curtain on how porn contributes to their businesses, a topic they have been loath to discuss publicly.
On Thursday, satellite provider DirecTV cited “lower adult buys” as a cause for weaker pay-per-view revenue in its second quarter earnings. That followed Time Warner Cable Inc.’s admission last week that shrinkage in the adult category was responsible for more than a third of a $14 million drop in video-on-demand revenue.