Ad Age

Pay-TV Services Lose a Record Number of Subscribers — and You May Already Know the Reason

Aug 14, 2015  •  Post A Comment

Pay-television services just recorded the largest drop in subscribers in history, and the reason is well-known: cord cutting.

Quarterly figures show the number of pay-TV customers fell by 625,000 in the latest period, Ad Age reports, citing a report by the research firm SNL Kagan.

“While about 100.4 million households still pay for traditional pay TV, the report underscored investors’ fears that cord cutting is gaining momentum and starting to fray the TV industry’s business model,” the story reports.

The piece notes that media stocks endured a selloff last week, fueled in large part by those fears. Entertainment companies reportedly lost in excess of $60 billion in value in a two-day period, with programming suppliers including Disney, Time Warner Inc. and Viacom among the hardest hit.

“So-called cord cutters are dropping pay-TV packages that cost an average $87 a month in favor of online services from Netflix and Amazon priced at under $10,” Ad Age notes. “That’s led to falling viewership at many cable networks, hurting ad sales and threatening to reduce subscriber fees.”

snl kagan


  1. I haven’t read the article yet, but I’m going to guess why they’re losing subscribers first: The price just keeps getting higher and higher and they find every which way to suck every penny out of our pockets that they can; the company treats their customers like crap and as if we are their slaves; and their networks and internet keep cutting out. OK, now I’ve read the article. It says it’s because people are giving up their subscriptions by “cutting the cord” because Netflix and Amazon are cheaper. Yeah, right.

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