The subscription television business just had a challenging quarter — and that’s putting it mildly. “With Charter Communications reporting a loss of 152,000 video customers during the period, the pay-TV industry lost more more than 700,000 subscribers in the second quarter, the worst ever for customer attrition,” FierceCable reports.
MoffettNathanson analyst Craig Moffett estimates cable, satellite and telco TV operators lost a combined 757,000 subscribers in the second quarter, with that number adjusting to 708,000 if gains by Dish Network’s Sling TV platform are factored in.
“While cable losses eased back to their slowest second-quarter pace in a decade at an estimated 242,000, Moffett said, telco operators lost a record 529,000 video customers during the period,” FierceCable reports. “On the satellite side, AT&T’s aggressive growth of DirecTV, which added 342,000 customers during the second quarter, was offset by an estimated 330,000 customers lost by Dish’s core service, Moffett added.”
The report includes some good news, of sorts: “The rate of attrition doesn’t appear to be accelerating all that much, with operators losing 1.3 percent of their collective video base in the second quarter vs. 1.2 percent in the first quarter.”