Time Warner Cable joined Comcast in slowing the rate of cord cutting last quarter. As we noted yesterday, Comcast lost 48,000 cable TV customers last quarter, compared to losing 81,000 during the same quarter last year. Time Warner Cable's earnings reflect a similar phenomenon, the company reporting (pdf) that it lost just 7,000 subscribers last quarter, compared to the 45,000 lost the quarter before, and the 180,000 lost during the third quarter last year.
It's a notable improvement for a company that most Wall Street analysts expected to lose at least 100,000 TV customers last quarter, and it's the best performance since 2006, notes the company.
It's sure to spark renewed claims by the cable industry that cord cutting is either non-existent or over-hyped, though the industry probably shouldn't pop the bubbly just yet.
While some cable operators have lost fewer customers last quarter, telcos and satellite pay TV operators (traditionally the strong performers) have been getting worse when it comes to TV subscriber rolls. AT&T lost 92,000 U-Verse customers last quarter, while Verizon added just 42,000.
Still, these losses and flat growth show cord cutting could probably easily be dealt with were the pay TV sector to finally concede and start seriously competing on price.
Fortunately for cable companies, broadband subscriber rolls continue to see strong growth, Time Warner Cable adding 232,000 new users on the second quarter.
"Our ongoing transformation is a testament to the strength of our operating plan and the commitment of our entire team – all 55,000 employees – who work tirelessly every day to make Time Warner Cable an even better company," stated Time Warner Cable CEO Rob Marcus.
Granted it's a company that won't technically exist by early next year, when Charter is expected to complete its $79 billion acquisition of Time Warner Cable.
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