“For years, cable companies had TV viewers over a barrel. They were the source for premium channels like HBO and Showtime, and basic cable networks such as ESPN and TBS. Even if you just wanted a decent picture from your local network affiliates, you had to sign up for cable unless you wanted to deal with spotty reception from an antenna on your roof or a set of rabbit ears.
But, it’s starting to look like the consumer and the cable company are switching places, and it’s the cable giants that are strapped to the proverbial barrel as subscribers flee to cheaper internet-based streaming services.”
Rex goes on to illustrate some of the points we have been discussing here for some time – that traditional Pay-TV providers are bleeding subscribers to the more nimble OTT streaming services like DIRECTV NOW, Hulu with Live TV, Sling TV and others.
For example, the juxtaposition of a new model streaming company like Netflix and a traditional Pay-TV provider like Comcast.
Take Netflix, which recently announced it would raise prices across the board. Yet analysts still expect an increase of 1.25 million Netflix subscribers between now and the end of the year.
On the other hand, last week, Comcast, the nation’s largest cable TV company, reported quarterly results that included a loss of 125,000 cable subscribers — nearly four times the 34,000 subscribers it lost during the three months between April and June.
As this trend only shows signs of accelerating, what will 2018 look like for the Pay TV behemoths? It can only be more of the same. Especially as even more streaming providers are looking at entering the streaming TV marketplace. The competition will mean more choice for consumers.
Its a good time to be a cord cutter.
Source: The Mercury News
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