First Quarter 2018 Cable Losses Exceed Expectations
Even the expert analysts at the Wall Street Journal weren’t prepared for the losses reported by major cable providers in the first quarter.
Even the expert analysts at the Wall Street Journal weren’t prepared for the losses reported by major cable providers in the first quarter. The stocks for Charter Spectrum took a major hit as they lost around 122,000 subscribers in just the last quarter—creating a sense of renewed panic among pay-TV providers.
This number is twice what analysts estimated, and up 22,000 from the last quarter of 2017. With the drastic hit to stocks, the company experienced a 20 percent decrease in overall value. Charter Spectrum wasn’t the only company that saw heavier than expected losses.
Comcast also saw an increase in the number of subscribers jumping ship. Even their network monopoly couldn’t save them from a loss of 92,000, reflecting an even greater impact by the cord cutting movement.
Experts are now expecting cord cutting to continue gaining traction as new services begin to deviate from more traditional entertainment means. Netflix is making out like a bandit, appealing to both the larger cord cutting market and to cable subscribers via their recently planned alliance with Comcast.
AT&T has held some ground with its DirecTV Now, but still managed to lose a whopping 188,000 subscribers as the quarter ended. The telecommunications giant can’t seem to do enough to stave off the loss of $660 million in video revenue, and its streaming service can only do so much with its lower profit potential.
While this news is expected for the growing number of cord cutters worldwide, it still raises concerns about future costs of internet service if broadband remains in the control of companies like Comcast.
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