Cable losing subscribers in record numbers

Apple Online Store“Cable networks lost 130,000 subscribers in the third quarter, the industry’s second straight quarter of sequential declines, estimates Credit Suisse. The pay TV industry, which up until the until the second quarter of this year had never in history posted a decline in customers from one period to the next, could end up losing 1.5 percent subscribers annually if the shift to Internet providers continues, the research firm said,” John Melloy reports for CNBC.

“Netflix, Apple TV, Google TV, Microsoft’s X-Box, and other broadband-based systems are already causing many customers, especially younger viewers, to drop cable,” Melloy reports. “‘Eventually just as mobile phones eroded the need for a land line, the mix of Internet TV choices will cause the cable subscribers to depart their cable providers,’ said Simon Baker of Baker Avenue Asset Management. The money manager is looking to buy companies that help speed up the delivery of content over broadband networks.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

42 Comments

  1. Considering the bull shit and utter brainwashing that is the vast majority of all of the content presented by the TV culture, they ought to pay me to accept cable service. Even then, I still would not watch it. In my opinion, the USA is one of the most propagandized populations on the planet and the TV culture shares much of the blame. Prime example, Justice Scalia in Europe a few years ago arguing in favor of torture, citing fictitious tv show character Jack Bower as an example.
    Our society would be a healthier one overnight if TV just vanished.

  2. $1200 per year for the 5 channels you actually watch, plus 20 channels you may watch occasionally, all with commercials. The producers of the show and network have already been paid for the content with the advertising.

    This is completely crazy.

    Each household is paying this outrageous fee each month, simply to pay for the 30 year-old low-tech distribution network. Not the content. The content is being paid for by your eyeballs. The cable companies are ripping us all off.

  3. In am eagerly awaiting the day when I can get particular series from both Showtime and HBO in HD on my HDTV without subscribing to ATT Uverse or a cable company. Until then, I’m stuck.

  4. I loved cutting my phone company back in the day when Vonage first came out. Did Skye for awhile until finding Ooma (free US only), which plugs into your network so your computer can be off. Got a 2-line phone with satellite phones throughout the house and then plugged a MagicJack into line 2 for free Canada calls but the computer has to be on for that. OK workaround.

    Next my sights are on cutting cable TV. But I’m a big HBO & Showtime fan so have to figure this out. Gotta go see what AppleTV provides today.

  5. OK now we can see why all the lawmakers who pushed net neutrality just got fired.  The companies in control of suppling the political adds got rid of who they wanted.  So now they will be able to limit what users can download.  For all you people who bitch about cable, and actually vote, go see if you voted out the person who was trying to help you achieve what you want.  Don’t worry though all the taxes you will not be paying can go to the more expensive high speed Internet provider.    

  6. Until somebody can completely break into the content provider/cable network $$ circle – cable will not be going anywhere.

    Basically that is why Apple is relatively cautious with the Apple TV and looking for input 2 not input 1.

    Now if Apple would just buy a few really good content producers and start firing up some video servers in NC…

  7. Cable companies should have ala carte service.

    When I was canceling my cable last year, I asked Time Warner if I could get ONLY HD channels, since that’s all I watched.

    NO, they said, you MUST have “basic service” in order to get HD channels.

    BS. It’s all computerized. They could do it if they wanted to.

    So, they drive away customers with their greed. Great business plan.

  8. As much as the cable companies suck, I think there is a much simpler reason for the loss of subscribers: It’s the economy, stupid.

    Disclaimer, I have FIOS, but the TV portion of their service sucks almost as bad as Comcast. Rip off charges for STBs, incomprehensible packages of channel plans, VOD servers falling over on Saturday evenings, etc. etc.

    When my current discount package is up, I’m serious considering dropping both phone and TV and taking Internet only.

  9. I am missing something here. If users drop cable where are they getting their internet connection? DSL? not a great choice. Or are they simply keeping basic cable and omitting the more expensive options?

  10. I’ve cut the cable TV months ago and have Ooma for free telephone service, plus a WMC box for OTA HDTV, and my Apple TV for music, iOS devices, and Netflix.

    Cable is begging to get customers back by lowering their triple-play packages by $30 a month, guaranteed for two years.

    I ain’t taking the bait.

    Tack on box and remote monthly rental fees, FCC fees (which I don’t get if it’s just the modem) and the costs creep back up again.

    Sometimes, you just have to teach them a lesson.

  11. It’s been said.. Cable Companies, ANY ISP for that matter, will start charging you for BANDWIDTH the minute it becomes acceptable for them to do so. It’ll start off with tiny fees at first but as soon as the possibly can it’ll ramp up and the sheep out there won’t realize they paid more than $2.99 for that downloaded movie or tv show. It’ll start out 10c a gig then 40c, then $1.. get it?

    Heck I can soak up 20 gigs in one day right now just to get several TV shows in HD that I missed last week. Do even half that a few times a month and there’s your $40 cable bill…

  12. Not being much of a TV guy, I cut off the Verizon FiOS TV service (returned the set-top box) and replaced it with the Apple TV with a Netflix account to watch movies and documentaries. The savings is substantial. All my music and movie collection on iTunes on my iMac and MBP also get streamed to ATV, so the old stereo and DVD player are gone as well. When apps come to ATV, I reckon it’ll also replace the Wii for the kids.

    I’m still getting the Verizon FiOS Internet for a flat fee and it’s smokin’ fast. I suppose they can/will start charging for bandwidth, but we’ll see. Even if ISP service is roughly the equal of a basic cable TV service, the Internet streaming model is still a far better value. The only downside is not getting live sports, but I’ve lost interest in watching sports for the most part anyway.

  13. I have AT&T DSL 6.0 “Extreme” and it only costs me $20 per month. I share my wi-fi connection with the hot girl next door and in exchange she lets my use her Netflix account for streaming. I get my Family Guy fix from Hulu (free version) and I’m getting an antenna for local sports soon.

    So Cable, FUCK OFF!!!

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