Summer Forecast for Cable Industry: Possible Record-setting Losses

by | Jun 14, 2017 | Blog, News/Trends | 0 comments

The first quarter of the year was pretty harsh for the cable providers. They endured some fairly significant subscriber losses. Apparently, the summer forecast is not looking nice for them either.

Last quarter, analysts estimate there was a loss of 762,000 pay-TV subscribers, which was roughly five times the loss for the same period last year. Articles were published signaling that this might be the year cord-cutting finally begins to impact the pay-TV business. With the rise in alternative streaming video, it looks like things are only going to get worse.

UBS analyst John Hodulik’s recent research note makes a case for the business to only get more difficult for the legacy pay TV sector.

“That (a 1 million 2Q decline) would be the worst result on record and equate to a 2.5% annual decline,” Hodulik notes. “We estimate this will put the industry on pace for a 3.3% decline in 2017 and 4.0% in 2018,” the analyst added.

Industry leader Comcast seems to think they can fight the trend with the addition of Netflix and YouTube apps to their Infinity X1 service. The simple way for the cable industry to combat this attrition is simple, they need to be competitive on price and channel flexibility.

 

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