Another Million Consumers Cut the TV Cord Last Quarter While the rate of cord cutting during the second quarter wasn't quite as aggressively dire as many analysts predicted, the latest wave of TV subscribers lost by the traditional cable TV industry wasn't what you'd call good for the pay TV industry, either. Wall Street research firm MoffettNathanson predicts that once tallied, the sector lost about 1 million pay TV subscribers last quarter, with the losses hitting Dish Network, DirectTV, and AT&T particularly hard.

includes the additions seen to the company's Sling TV streaming video services (which Dish refuses to break out specifically to lesson the apparent impact). Dish for example lost another 196,000 subscribers on the quarter, and that tallythe additions seen to the company's Sling TV streaming video services (which Dish refuses to break out specifically to lesson the apparent impact). AT&T was also hit incredibly hard, despite the company's apparent hopes of getting ahead of the trend via its DirecTV Now streaming video platform. The company lost 156,000 DirecTV satellite TV customers and 195,000 IPTV (formerly known as U-Verse) customers for a net loss of 351,000 “traditional” video subscribers. And while AT&T did manage to add 152,000 DirecTV Now streaming video customers, the additions weren't enough to counter the overall losses. “[Y]es, things are getting worse,” the research firm wrote of its latest findings. “But at least in Q2 they got worse more slowly. Less worse. Or, not as worse. Or, well, you get the idea.” The biggest reason for these ongoing defections? Customers are tired of paying an arm and a leg for bloated cable TV bundles and historically-atrocious customer service, and despite a lot of lip service toward competing more seriously on channel flexibility and price, most cable operators continue to think that The biggest reason for these ongoing defections? Customers are tired of paying an arm and a leg for bloated cable TV bundles and historically-atrocious customer service, and despite a lot of lip service toward competing more seriously on channel flexibility and price, most cable operators continue to think that raising rates anyway is the best path forward.







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Most recommended from 31 comments

adam1991

join:2012-06-16

united state 22 recommendations adam1991 Member One million? Let's see, that's $7 million/month ADDITIONAL not going to ESPN...that's $94 million ADDITIONAL per year they're not getting...



Pretty soon, they'll have to cut out the free Starbucks.



Oh, wait--maybe they can OUTSOURCE their on-air talent, instead of having them as employees. It'll be just like 1900 Chicago, with laborers joining up at the front door every morning at 6am, begging for crumbs of business at ever lower and lower rates, hoping they haven't pissed off the plant foreman...

maartena

Elmo

Premium Member

join:2002-05-10

Orange, CA 17 recommendations maartena Premium Member A million a quarter not "aggressively dire"? 2015 saw 1.1 cut the cord in total.

In 2016 that number was 1.4 million in total.

In 2017, we have passed the 2 million mark within the first 6 months, it was around a million in the first quarter, and now another million in the second.



Sorry, but I DO call that "dire" compared to previous years. Although subs typically pick up a little in the winter months, we are on track to lose 4 million customers if the trend continues. That is nearly a 5% subscriber loss based on 96 million total subscribers in 2016.... that is huge. stephend2

join:2012-11-22

Belzoni, MS 12 recommendations stephend2 Member High pricing is definitely the reason...



»belzonicable.com Here I am, in a small town with a cable system gaining video subs. We have added over 500 new subs in the last 2 years and we don't even offer digital service yet. Main reason they are leaving satellite is the price. We don't offer everything under the sun but we have what I feel is a good programming package that appeals to our market as a whole. KoRnGtL15

Premium Member

join:2007-01-04

Grants Pass, OR 11 recommendations KoRnGtL15 Premium Member Ah music to my ears :) Love it!!! tmc8080

join:2004-04-24

Brooklyn, NY 6 recommendations tmc8080 Member wired broadband must be coming... Notice that Dish Network and DirecTv took the biggest hit!

That must mean wired broadband is coming to take some of those subscribers away as they can get video over the internet free or dirt cheap! DarthIT

join:2015-08-12

United State 4 recommendations DarthIT Member It?s good The more subscribers that cut the tv the less leverage the content creators have. And the less valued their content is. Now this should lower costs right. Because isn’t that what carriers have always said was the reason for high costs???

IowaCowboy

Supermarket Hero

Premium Member

join:2010-10-16

Springfield, MA ARRIS SB6183

Netgear R8000

4 recommendations IowaCowboy Premium Member Comcast not hit as hard Comcast isn't hit as hard by cord cutters because their rates make it the same price if not cheaper to get internet with TV than internet as a standalone subscription.



I take the Comcast TV offering so I don't have to manage a dozen or so streaming subscriptions to get the content I want. CyberGuy

join:2006-08-21

Colbert, WA 2 recommendations CyberGuy Member The Hollyweirdos aren't helping themselves much Especially on Twitter. They should stick to acting and leave politics to the pros.

unknvoip

RIP goose

Premium Member

join:2006-07-25

Rochester, NY 95.9 12.0

2 recommendations unknvoip Premium Member One more in the 3rd quarter Add me to the ranks. Last month I called and cancelled DirecTV. Going OTA with a DVR and going to use a variety of OTT streaming services - with Sling being the first.



Out of the shoot we are saving nearly $70/mo with almost no loss in channels we watch plus we picked up some shows/Channels that are new favorites. I did have some Equipment investment, but that will be paid off in about 8 months.



I'm pretty sure that at least some of the people I talk to are considering doing the same.

Brad Bishop

Premium Member

join:2002-09-27

Atlanta, GA 2 recommendations Brad Bishop Premium Member Packages Suck / Content Sucks The packages suck. It's ridiculously expensive and people are showing that by leaving.



Something that's often not talked about: Content sucks.



None of the channels bear much resemblance to their channel names these days. I've seen paranormal activity shows on The Weather Channel. TLC was toast nearly 20 years back with it's constant reality shows. Discovery took a little longer but they're there now.



Content sucks. People will generally pay for content. You can see this with HBO, Hulu, & Netflix.