Time Warner Cable and Cablevision are the latest service providers to lose subscriber numbers as consumers continue cord cutting for economic and practical purposes. Providers and analysts are looking to better evaluate the market to try and understand why customers want to end their subscriptions -- and what it will take to bring them back.
Time Warner said it lost 155,000 subscribers during Q3, while Cablevision lost almost 25,000 subscribers. Both companies, which suffered more losses than previously expected, blamed the sluggish economy and poor job market for their problems.
As consumers look to reduce spending, many are looking more carefully at their TV bill. Comcast also saw a significant decrease in subscribers -- losing up to 275,000 subscriptions -- with the number doubling during Q3.
Some companies admit cord cutting (for whatever reason it’s happening) is a threat, while other executives deny its significance. Time Warner Cable COO Landel Hobbs said most subscribers canceling services stems from people that don't have high-speed Internet -- they are switching to satellite, or leaving behind TV subscriptions.
Cable operators have been wary of the Internet since 2009, as industry executives saw cautious subscribers look at their bills more closely. Although some people are dropping their service, these companies are able to make adjustments by upgrading current subscribers to more expensive plans.
Furthermore, companies can help recruit new phone and broadband Internet subscribers while losing paid TV subscribers. There is a lot of uncertainty and confusion in the home entertainment market today, because manufacturers, content providers, and consumers are still learning about the changing market.
More people are streaming content into the living room, but the majority of these people have shown little interesting in leaving behind their paid subscription services. Netflix, Amazon VOD, Blockbuster, Hulu Plus, YouTube, and other services bring copyrighted material directly into the living room like never before.
It's possible Web-connected HDTVs could sink set-top boxes in the future, however, set-top boxes are still expected to have a strong showing in the short term.
Viewers will settle in and adjust to the wider selection of services available while providers look to attract new subscribers. Do you think the plethora of internet TV options available now are hurting cable & satellite TV service operators?
