Cinema and Cable Companies Reaching the Point of No Return

Comcast may be trying to beat cord cutting, but Disney is wholeheartedly joining the revolution.

The latest financial reports show cable stocks taking a nose dive, while stocks associated with cord cutting companies continue to climb. Its time to consider the future of entertainment—and there’s a good chance that it’ll be far from what’s expected.

MoffetNathanson analysts reported a 3.4% drop in cable subscribers from 2017. This represents the largest decline in pay-TV customers since cord cutting first became popular eight years ago. Fortune reported on the drop in subscribers, pointing out that this doesn’t include people that have never subscribed to any type of entertainment service to begin with. All things considered, the approximate number of people who don’t subscribe to a pay-TV service has reached 13.5 million in the US.

Cable giants are scrambling to bolster themselves against the changes and to recoup their financial losses. A few months ago, Disney’s acquisition of Fox was front page news for cord cutters. This has led to the development of several different streaming services, and the potential development of others geared towards creating a more diverse network.

Comcast has recently gone another way with their attempt to save their subscriber numbers. The company is making an effort to buy Sky– a UK based pay-TV service that would help to offset their losses. Disney was supposed to acquire Sky while absorbing Fox, and this deal forges a new battle between companies struggling to keep up with the times.

An article by Business Insider points out the differences in the way that Disney and Comcast are handling the cord cutting threat, writing, “For the time being, owning Sky would get Comcast into markets it isn’t very strong in, like say Italy, and would help it lock up key sports rights – since Sky recently inked a deal to broadcast Premier League soccer by spending less than had been anticipated.”

The introduction of high-tech internet opportunities on a wider scale has made cord cutting a possibility for people who were previously stuck with traditional forms of cable. The industry is in a major time of transition right now, and things are getting exciting.

Many in the entertainment industry are also speculating about the threat of cord cutting for traditional cinema. The rising costs of movie tickets combined with a tub of popcorn costing more than an entire dinner have created an unpopular atmosphere for movie-goers.

Why go out when you can watch box office hits from the comfort of your own home?

As streaming services like Hulu and Netflix have started to pour money into cinema quality productions, the big box office is feeling the sting. The in-home entertainment barometer is going to be largely measured against the success of Disney or Comcast in the coming years.

Comcast may be trying to beat cord cutting, but Disney is wholeheartedly joining the revolution. The consumers will ultimately decide the market, but only time will tell whose tactic is poised to profit from the new industry direction.

Patricia Howard

Contributor

Article Author

Patricia Howard is a freelance journalist and Netflix enthusiast from rural Indiana. She has a bachelor''s degree in communication with a concentration in journalism. When Patricia isn''t writing, she enjoys catching up on her favorite shows with her husband and seven children.

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