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"Wireless Wednesday"–Cutting the TV Cord

August 7, 2013 — by WEBOOST

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This week for Wireless Wednesday we’re discussing a super interesting article from @AllthingsD about the future of cable. The article is titled, “Cord Cutting Used to Be a Myth. It Isn’t Anymore.” Check out the article pasted below–

The pay TV business used to be a slow-to-no-growthbusiness.

No more: Now it’s shrinking.

Here, via analyst Craig Moffett, are the most recent numbers for the big pay TV providers that just finished submitting their Q2 reports to investors. They’re down 360,000 subscribers over the last year, or a decline of 0.3 percent.

That’s not a huge decrease, and Q2 is usually a bad quarter for the pay TV guys. But, as you can see, the industry has now been in decline for three consecutive quarters:

pay TV q2 2013 numbers

Cord-cutting skeptics used to argue that the reason the industry wasn’t growing was because the housing market was shrinking: No new houses/homes, no new cable subscribers — no need to blame Netflix, iTunes, etc.

And, while lots of people are still living with their parents, the housing market is picking up, so the pay TV decreases are more significant. Moffett figures that the industry suffered a net loss of 911,000 subscribers in the last year. The year before that, it had lost 258,000.

Also note that this isn’t a matter of cable subscribers from Comcast or Time Warner Cable going to competitors. Satellite TV providers Dish Network and DirecTV are also losing subs, and while telcos AT&T and Verizon are still growing, their rates are slowing.

“Cord cutting used to be a myth. It isn’t anymore,” Moffett writes in a new note. “No, the numbers aren’t huge. But they’re statistically significant.”

What do you think about this article? Do you think that cable is a way of the past? How do you watch your favorite TV shows? Let us know in the comments section below, or on Twitter/Facebook.

To see this article in its original format, click here.

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    Comments (2)

    Freedom Furniture & Electronics on September 19, 2013 at 9:38 pm said:

    I have been doing alot of research on cord cutting for a series of blog articles I am writing about ‘cutting the cord.’ I interviewed a gentleman named Dan Rayburn at blog.streamingmedia.com who really seemed to know his stuff and make his living in this industry. He told me that cable companies are still kicking it big time and the complexities of switching to online TV are just to much for your normal viewer. He said the idea that there are more and more people cutting the cord is just a myth!

    I am not sure, just wanted to add that…

    best regards,

    jay wilner

      Taylor White on September 19, 2013 at 9:42 pm said:

      Jay,
      Thanks for that insight! That is really interesting and what you are saying makes complete sense to me. Hmmm….maybe some more research into the topic is required here?! I would love to read your series of blogs once they become available if possible? Thanks for sharing this!