A new SNL Kagan analysis released this week shows that cable, satellite and telco video combined lost 216,000 customers in the second quarter, the first such decline in history, Mediaweek reports.
The loss brings total subscribers down to 100.1 million and compares with a gain of 378,000 subscribers during the same period in 2009, the story reports.
Cable was the big loser, down a total of 711,000 subscribers. Six of the eight MSOs reported their worst quarterly losses, the story says. Satellite and the telcos were up, but not enough to offset the losses in cable. DBS was up 81,000 subscribers while the telcos added 414,000 subscribers.
The analysis blames the economy, with low housing formation and high unemployment cited as contributing factors. Also cited is the digital transition, which contributed to a spike last year and is now seeing the expiration of introductory contracts with special promotional rates.
All I can think to say to this is, what did you expect? With higher and higher rates and worsening customer service, I’m surprised that more people, like myself, haven’t cut the cable yet.
The handwriting is on the wall. Don’t make the same mistakes the music industry and the print industry did and hide your head in the sand. Major change is coming to your industry, get ahead of it and take advantage of it.