Two More Cable Cos Report Subscriber Losses
Time Warner Cable reported a third-quarter decline of 155,000 video subscribers, while New York-area provider Cablevision reported a loss of 24,500 subscribers during the same period (via Home Media Magazine). But even as the subscriber losses exceeded analyst expectations, the cable operators echoed Comcastâ€™s reckoning from last month (via the Wall Street Journal)Â that subscriber declines are due to general economic conditions â€” as opposed to the advent of Internet-based entertainment options.
Other industry observers maintain that such â€ścord-cuttingâ€ť is beginning to impact cable companies’ business. AP quotes Verizon Communications CEO Ivan Seidenberg as likening anecdotes of cord-cutting to the early days of cell phone subscribers giving up their landlines. â€śThe first thing when that happens is you deny it,â€ť Ivan Seidenberg says. â€śI know the drill. I have been there.â€ť
The volatility continues to be at the low-end of the pay-TV market. In contrast, satellite TV provider DirecTV added 174,000 new U.S. subscribers in its third quarter â€” while profit at the company rose 31% as customers flocked to its exclusive programming and premium DVR service (via Bloomberg). DirecTV also said that a tightening of its customer credit requirements helped the bottom line.