Pay-TV subscription rates continue decline

Comcast, Charter, and AT&T’s DirecTV all reported significant pay-TV subscription decline. Comcast lost 96,000 customer subscriptions in the first quarter of 2018, Charter lost 122,000 in the same period, and DirecTV lost 188,000 subscribers. These losses continue the declining trend in the pay-TV marketplace.

The decline is likely related to pay-TV subscription prices, which have soared over the last 20 years. One new report finds that cable TV prices have increased 74 percent since 2000.

Cord-cutting, or cancelling traditional video service for over-the-top streaming services or no service at all, is a problem for cable companies across the industry. In the first quarter of 2018, viewing hours of over-the-top services like Netflix and Hulu grew by 114 percent since the same period last year, a new report found.

Companies are adapting by trying to grow the amount of content they offer and provide their own alternative over-the-top service, like DirecTV NOW. It’s unclear what, if anything, can stop the pay-TV subscription bleed.

Links:

Viewers Are Ditching Cable For Streaming Faster Than Anyone Expected (Fortune, Apr. 29, 2018)

AT&T reports significant video subscription loss (Speed Matters, Oct. 16, 2017)

Pay TV bills up 74% since 2000, are a leading cause of cord cutting, Kagan says (FierceCable, Apr. 25, 2018)

Over-the-Top TV Viewing Up 114% in Q1, Conviva Says (Multichannel News, Apr. 25, 2018_

AT&T to buy Time Warner for $85 billion (Speed Matters, Oct. 24, 2016)

AT&T woos cord-cutters with $35 DirecTV Now streaming service (Speed Matters, Oct. 27, 2016)