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Top Pay TV Providers See Third Quarter Subscriber Loss
Telcos Stealing Cable TV Customers, Cable Stealing Telco Broadband Customers
by Karl Bode 12:35PM Wednesday Nov 14 2012
According to the latest market analysis by the Leicthman Research Group, the nation's top 13 pay TV providers, who collectively control around 94% of the market and serve 94.6 million subscribers, saw their total TV subscribers dip last quarter. Those 13 providers lost about 53,500 net video subscribers in the third quarter, after gaining 17,000 during the same quarter one year ago.

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"With a fairly saturated market, the multi-channel video industry was essentially flat in the third quarter of 2012," said company CEO Bruce Leichtman of the data. "This year's third quarter was in line with recent years, with about 70,000 more losses than a year ago, and about 25,000 more losses than two years ago."

While cord cutting (something Leichtman historically doesn't give much weight to), no new home builds and market saturation have a lot to do with the decline, the overall trend continues to be a shift from cable to telcoTV. The top nine cable companies lost about 420,000 video subscribers in Q3 2012, while the top telephone providers added 317,000 video subscribers during the same period.

Cable operators likely don't feel too bad about the losses, as they're the ones doing the stealing on the broadband side. As phone companies like AT&T and Verizon stop caring about smaller city and rural broadband users, they're letting those users simply flee to cable. Similarly, smaller rural-focused telcos like CenturyLink and Frontier lack the resources to match faster cable DOCSIS 3.0 speeds.

Satellite TV providers are also seeing their additions slow, adding just 48,000 subscribers in the third quarter -- compared to a gain of 216,00 in the third quarter of 2011.

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en103

join:2011-05-02

I wonder why...

CableCo is losing subs.

Hmm... could it be that their price increases are (significantly) higher than the rate of inflation ?

ITALIAN926

join:2003-08-16
kudos:2

Re: I wonder why...

No

JasonOD

@comcast.net

Re: I wonder why...

said by ITALIAN926:

No

I think it's part of it, and it's likely those leaving are doing it primarily based on price concerns or simply chasing new customer promotional offers.

There will have to be some rational and common sense discussions between both sides of the content biz (networks and distributors) if they want to keep the current TV subscription model healthy.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:2
said by en103:

CableCo is losing subs.

Hmm... could it be that their price increases are (significantly) higher than the rate of inflation ?

It's because the cost of everything is going up and the economy is bad.

nonamesleft

join:2011-11-07
Manitowoc, WI
Reviews:
·Comcast
·Callcentric

Re: I wonder why...

said by fifty nine:

said by en103:

CableCo is losing subs.

Hmm... could it be that their price increases are (significantly) higher than the rate of inflation ?

It's because the cost of everything is going up and the economy is bad.

Wouldn't that want to make you compete with other competitors instead of being the scum bag that raises rates bi-annually?

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4
said by en103:

CableCo is losing subs.

Hmm... could it be that their price increases are (significantly) higher than the rate of inflation ?

'tis the season., rate hike season 6 weeks away.
--
Despises any post with strings.
brianiscool

join:2000-08-16
Tampa, FL
kudos:1

TV Subscriptions

People are finding it cheaper to just have an internet connection. No real use of having cable TV anymore. You can get Hulu and Netflix and stream everything.
Gami00

join:2010-03-11
Mississauga, ON

Re: TV Subscriptions

said by brianiscool:

People are finding it cheaper to just have an internet connection. No real use of having cable TV anymore. You can get Hulu and Netflix and stream everything.

so they're "Cord Cutting" now.?

dnoyeB
Ferrous Phallus

join:2000-10-09
Southfield, MI
Reviews:
·Comcast
You can't stream everything. Hell, you can't stream any of the shows I watch.

The Colbert Report
The Daily Show
The Walking Dead
Hardball with Chris Matthews
etc.

Maybe you can get old episodes when they are no longer relevant...
--
dnoyeB
"Then said I, Wisdom [is] better than strength: nevertheless the poor man's wisdom [is] despised, and his words are not heard. " Ecclesiastes 9:16
BiggA

join:2005-11-23
EARTH

Re: TV Subscriptions

Sorry, but Colbert and Stewart on free on their websites the next day. Just sayin'. You can buy Walking Dead on iTunes. Chris Matthews is the hardest (no pun intended), but you can get audio excerpts as well as Rachel Maddow's whole show for free on iTunes. I'm not a fan of cord cutting, I don't think it makes a whole lot of sense for many people, and I think it's annoying overhyped, but get your facts straight on what is out there.

dnoyeB
Ferrous Phallus

join:2000-10-09
Southfield, MI
Reviews:
·Comcast

Re: TV Subscriptions

That's a lot of dancing around. Neither Hulu nor Netflix stream any of the shows I cited. I watch television on my 42" TV not my 19" computer. And I won't be holding classes to teach my mother, wife, friends, etc. how to get shows when they are over my house.
--
dnoyeB
"Then said I, Wisdom [is] better than strength: nevertheless the poor man's wisdom [is] despised, and his words are not heard. " Ecclesiastes 9:16
brianiscool

join:2000-08-16
Tampa, FL
kudos:1

1 recommendation

Re: TV Subscriptions

Purchase a wireless keyboard and mouse. Make two short-cuts for them or a folder. Simple and done.

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Re: TV Subscriptions

said by brianiscool:

Purchase a wireless keyboard and mouse. Make two short-cuts for them or a folder. Simple and done.

We did the same when we cut the cord. Hooked a computer to the 47" TV. Using a keyboard/mouse combo. It is kludgy, but it gets the job done.
--
USA 2012 - the mooches won.
BiggA

join:2005-11-23
EARTH
Well being picky about what service or device they are on is a whole lot different than what you said, which is that you can't stream them. You can get them on an HTPC. Colbert and Stewart are also available on iTunes through the Apple TV.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4
said by dnoyeB:

You can't stream everything. Hell, you can't stream any of the shows I watch.

The Colbert Report
The Daily Show
The Walking Dead
Hardball with Chris Matthews
etc.

Maybe you can get old episodes when they are no longer relevant...

Correct. also if you like "day they air" you won't get that either.
--
Despises any post with strings.
ncbill
Premium
join:2007-01-23
Winston Salem, NC

Re: TV Subscriptions

Horrors!

It must be a tragedy for me to have to wait overnight for Amazon to push the latest commercial-free HD episode of Walking Dead down to my Tivo.

For far less than paying $100/month (non-promo) for digital cable.

said by dvd536:

said by dnoyeB:

You can't stream everything. Hell, you can't stream any of the shows I watch.

The Colbert Report
The Daily Show
The Walking Dead
Hardball with Chris Matthews
etc.

Maybe you can get old episodes when they are no longer relevant...

Correct. also if you like "day they air" you won't get that either.

majortom1029

join:2006-10-19
Lindenhurst, NY
kudos:1

not just in rural areas

This isn't just a rural area problem. Big chunks of Long island do not have fios(town of brookhaven and most of the east end). The town of brookhaven which has a population of half a million people does not have fios. Verizon stated it never will.

That's a big amount of people that version will not even attempt to gain on fios.

compugeek
Premium
join:2002-07-30

Big Deal

They make it sound like it is the end of the cable company. It is .05% of their total.

Geek

88615298
Premium
join:2004-07-28
West Tenness

Re: Big Deal

If you consider that households are growing at a rate of 200,000 to 250,000 per quarter that 50,000 loss is actually bigger. more like 300,000
mogamer

join:2011-04-20
Royal Oak, MI

Re: Big Deal

said by 88615298:

If you consider that households are growing at a rate of 200,000 to 250,000 per quarter that 50,000 loss is actually bigger. more like 300,000

Exactly right. There's a lot of potential just by taking into account population growth. The poor economy does have something to do with it. But, if my sons are a typical example, younger people would rather get their entertainment from the net than a traditional pay-tv service.

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

1 recommendation

Wrong

Why do they call it "cord cutting" when people simply switch from one provider to another?
--
USA 2012 - the mooches won.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Wrong

They don't.

It's called Cord cutting when they turn it off altogether.

antdude
A Ninja Ant
Premium,VIP
join:2001-03-25
United State
kudos:4

Dang phone companies.

Come on Verizon! Some of want to get off cable and get FIOS!

88615298
Premium
join:2004-07-28
West Tenness

Re: Dang phone companies.

If you don't have FiOS now you're not getting it.

antdude
A Ninja Ant
Premium,VIP
join:2001-03-25
United State
kudos:4
Reviews:
·Time Warner Cable

Re: Dang phone companies.

said by 88615298:

If you don't have FiOS now you're not getting it.

Ever? Even in 50 years? I find it funny that they are in the cities, but not in the neighborhoods.
openbox9
Premium
join:2004-01-26
united state
kudos:2

Re: Dang phone companies.

Not 50, but I bet it'll likely be another couple of years before the FiOS deployments begin again.

antdude
A Ninja Ant
Premium,VIP
join:2001-03-25
United State
kudos:4
Reviews:
·Time Warner Cable

Re: Dang phone companies.

said by openbox9:

Not 50, but I bet it'll likely be another couple of years before the FiOS deployments begin again.

Two years isn't bad. However, the question is when I will be able to get mine.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
I'm not sure. They clearly want everyone on capped and metered and very lucrative LTE.

FIOS could be done, period.
openbox9
Premium
join:2004-01-26
united state
kudos:2

Re: Dang phone companies.

I disagree. Major CAPEX is going to the LTE build, which is going to be done soon. Then what? My guess is a return to FTTH.
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink
said by KrK:

I'm not sure. They clearly want everyone on capped and metered and very lucrative LTE.

FIOS could be done, period.

Nonsense. None of them want capped services. They'd much rather sell you a higher priced "unlimited" tier to overcome your meter anxiety.

But a few people ruin that option, just because they can, and the majority isn't willing to pay the price necessary to provide fiber. So you get LTE and caps.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Dang phone companies.

LOL

Caps and metering are not to "curb abuse" they are to further monetize and extract revenue from existing user base.

•••

jfleni

@bhn.net
Just wait! Google or somebody imitating them will eat their lunch fairly soon. Then they will stand around with their thumbs in their bums wondering what happened, and then try to bribe the politicians more to save their bacon.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Market Capture

People who are fed up with Cable switch to Telco. (Again)

People who are fed up with Telco switch to Cable. (Again.)

Around and around she goes. (People who for whatever reason can't turn it off... usually family demands.)

People who have done this a few times and are sick and tired of both and have no choices, and aren't under horrible family pressure for TV, just turn it off, period.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini

•••••••
tmc8080

join:2004-04-24
Brooklyn, NY

modern day price gouging's effects

who would've thought that price gouging would send customers to the competition... telcos push away broadband subscribers and cablecos push away video subscribers.

Bill Neilson
Premium
join:2009-07-08
Arlington, VA

People like me have cut back their TV

packages tremendously in the last 2-3 years and I am thinking of going as basic as could be with maybe just the sports pack.

The price of some TV packages is so laughably over-priced, I am not sure how some can see the value in it.