As the cord-cutting trend continues gain steam, it’s beginning to threaten the viability of the business models of traditional television, telephone, and Internet companies. Among the largest US telcos, AT&T and Windstream, experienced declines in their subscriber base in the last two quarters. Frontier, CenturyLink, and Consolidated Communications have also experienced a similar decline. Even Verizon is not immune – they recently reported two quarters of decline in fixed broadband services.
CenturyLink and Cincinnati Bell fared better; both registering growth in Q3 2016. Cable companies on the whole posted positive, if tepid, results. That being said, cable companies continued to lose pay-TV subscribers as consumers adopted next-generation broadband entertainment solutions. Because of this, US service providers are increasingly diversifying their business and replacing their core services with digital service offerings.
Service providers are increasingly adopting a new business model, including bundling and pricing strategies. They have an opportunity to explore new types of service offerings, such as own-OTT video services and innovative partnerships. In the end, service providers are also realizing they need to develop a solid relationship with mobile in order to survive and prosper.