Bleak Future for Cable Providers as Cord Cutting Surges
It's been no secret that cord cutting is becoming more popular, but the predicted 5.4 million Americans expected to break up with their cable company is far above analysts forecast. It's not quite double the 3.5 million subscribers lost in 2017, but the growth is troubling for the stubborn traditional pay television companies across America. And although some companies are seemingly getting the message (Dish's Sling TV, AT&T DirectTV Now) there still is a rather large disconnect between what the consumer wants and what telecom companies think they should be paying for.
The major player in this ecosystem, Comcast, is braced for one of their worst year's yet according to Macquarie Capital’s Amy Yong. The telecom giant could lose upwards of 430,000 video subscribers by the end of the year, doubling the 186,000 net loss in 2017. On the flipside, Comcast was still able to attract 103,000 subscribers to their X1 service, a market-leading experience that tied together home control as well as streaming capabilities from Netflix, Hulu, etc.
Although many analysts still see a positive long-term outlook for Comcast and their other offerings, the numbers suggest that there is still a disconnect between the services offered and what people are willing to pay for.