Big Cable has left itself vulnerable and unprepared for a potential mass exodus.
Menomonee Falls, WI (PRWEB)
May 25, 2017
The Pay-TV industry was caught off guard by 2017 Q1 subscriber losses five times greater than Q1 of the previous year. The 762,000 cancellations fall just shy of 2016’s total loss of 795,500 subscribers. Prospective cord-cutters are looking to new services outside of traditional cable to meet their television needs. The year-end launch of DIRECTV Now, 2017 launch of Hulu Live, and the continued growth of Netflix and Sling TV, continue to erode the cable industry’s subscriber base.
Death By 1,000 Cuts
As losses accumulate year-over-year, cable providers appear willfully ignorant to changing consumer needs. Findings from the Consumer Technology Association (CTA) suggest that the number of “paid streaming TV video subscribers (68 percent of the population) has caught up to the number of paid TV subscribers (67 percent). With every quarter’s fresh injury, Big Cable has left itself vulnerable and unprepared for a potential mass exodus.
In 2015, a Statisica survey highlighted the top reasons consumers cancel their cable subscriptions:
- Provider Price Increase 31.64%
- Direct Subscription Available 16.43%
- When more Sports Programming is available 8.79%
- The channels I want are available OTA 8.55%
Acting contrary to those findings, cable companies increased rates by 3.5% in 2016. At the same time, direct subscriptions, sports programming, and cable-like channel packages, have all become widely available. If cable companies continue to stay-the-course, consumers will continue to cut the cord in ever increasing numbers.
Industry executives have remained…