If there was ever any doubt that cord cutting will be the way of the future sooner rather than later, all one has to do is check out the massive subscriber losses pay-TV providers experienced in 2016.
In Q2 2016, the top 11 biggest cable TV providers in the US lost a combined total of roughly 665,000 subscribers. While it’s actually pretty normal for cable TV providers to lose subscribers in Q2 (Only to recoup them later in the year), what isn’t normal is how these results compare to Q2 2015’s net subscriber losses. In Q2 2015, these same companies only lost about 545,000 total subscribers – a difference of about 120,000 subscribers! That’s a lot of lost revenue.
No matter which way you look at it, the trend is clear – cord cutting is on the rise, and major paid TV services are paying the price.
Is This The End For Cable TV?
While this certainly isn’t the end of the line for major pay-TV companies like Charter, Dish, Comcast, etc., it will certainly affect them in the coming years.
The question that remains now is whether or not these companies can recover – in order to do so, they would need to adapt to the ever-changing needs and demands of their customers.
Where Do These Lost Subscribers Go?
Where exactly are all of these subscribers going? Surely they have to be getting their entertainment fix somewhere.
If you’re a cord cutter, you already know the answer to that question – but for everyone else, the answer is simple.
Cord cutters are gravitating towards cheaper online services that provide both original content and mainstream TV shows, movies, and more. Services like Netflix, Amazon, Hulu, and others are all offering what traditional TV is not – convenience and value. Don’t feel like recording your favorite shows, or sitting through multiple ads? No problem – watch what you want, when you want, for however long you want.
One thing’s certain – the current pay-TV is a dying model – it’s become too expensive. Cord cutters all over the country want more bang for their buck, and if cable and satellite TV companies can’t offer that, they will look elsewhere!