Cable Company's losing 1 million customers a year

CptlA · 05-22-2009, 10:31 AM

Is this a result of Internet TV, poor service by cable providers, or circumstances from the economy?

Quote:

Cable TV losing 1 million customers a year
May 22nd, 2009, 9:29 am · Post a Comment · posted by Tamara Chuang, a.k.a. The Gadgetress
Losing 1 million customers a year can’t be good for business. But when you’re so on top of the industry like the cable TV companies, it’ll take more staggering losses to lose your big lead.

The U.S. cable TV business serves 66 million customers and will remain the dominant paid-TV service for the next decade, predicts Mike Paxton, an analyst who watches the TV industry for market researcher InStat.

While newbies like telecom-based Verizon FiOS TV and AT&T U-verse have a lot more momentum and growth, those won’t be taking over in our lifetime, Paxton said. “Unless you’re 15,” he added.

TV services
Cable TV
66 million
Satellite TV
30 million
Telecom (FiOS/U-verse)
3 million
Broadcast
14 million
Total
113 million
Source: In-Stat
“Our U.S. forecast for the total households (ordering cable) is going down about 1 million a year,” he said.

You can’t blame the Internet for the declines, even as more people tune into free video sites online, like the TV-show heavy Hulu.com. Paxton has seen no evidence of this, “and we’ve been watching it very closely for six months.” Those niches, by the way, appear to be people who also subscribe to cable or satellite TV. “It’s an additive thing,” he said.

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staticMHZ · 05-22-2009, 10:36 AM

After the DTV transition they'll be getting plenty. More then they can chew.

bicker · 05-22-2009, 03:26 PM

Quote:

Originally Posted by CptlA

Is this a result of Internet TV, poor service by cable providers, or circumstances from the economy?

It is mostly a reflection of increased competition. There are at least three subscription television suppliers serving practically every municipality in the country now, and in some places there are five or six competitors vying for business. When you order a pizza for dinner for yourself, you've got enough for the meal and for leftovers; when you order a pizza for a family of five or six, everyone's going to have to eat a little less and still will go a bit hungry.

Piggie · 05-24-2009, 02:30 PM

Quote:

Originally Posted by staticMHZ

After the DTV transition they'll be getting plenty. More then they can chew.

Despite the problems with OTA DTV, the numbers are growing again for the percentage of people watching it.

I saw a Nielsen book from April 2009. OTA had gone up from 7% to 11% over the last couple of years. These stats say it's pushing over 12% now. I would not call that running away. That is a 76% increase. If there were 113 viewers two year ago, that would mean there were about 8 million households watching OTA. Now it's 14 million.

In the same time the article says cable lost about 2 million. So they had 68 now 66, or about a 3% decline.

I am making some assumptions on my number on what was going on two years ago, but still they are probably within a percentage point.

So cable lost 3% and OTA gained 5%. I am sure part of cable's losses were to satellite, but some were to OTA as I see it too often stated in forums people turned off cable.

Maybe in a good economy we might see people say the heck with the antenna, after all that is how cable got their start 25 years ago. But I don't think the climate is right for that at the present.

Orrymain · 05-25-2009, 05:47 AM

I think it's dissatisfaction. My sister is seriously considering satellite and trying to talk me into it. Comcast hasn't added a decent channel to our line up in ages. In fact, they keep taking things away. Then they raise prices. People can't afford cable, and they're frustrated by the channel lineup.

bicker · 05-25-2009, 06:12 AM

Yet a lot of folks are shocked to find out how much more satellite charges, if you have more than two televisions that need service. Both services have their advantages and disadvantages. Indeed, there are good reasons (but different reasons) why each is better than the other.

Piggie · 05-25-2009, 10:56 AM

Quote:

Originally Posted by bicker

Yet a lot of folks are shocked to find out how much more satellite charges, if you have more than two televisions that need service. Both services have their advantages and disadvantages. Indeed, there are good reasons (but different reasons) why each is better than the other.

Depends on the town and DMA. In Gainesville FL Dish offers locals in HD, more channels than Cox Cable and cheaper.

bicker · 05-25-2009, 11:01 AM

How is their pricing for service on two additional televisions any different in Gainesville as compared to anywhere else?

Boo-Ray · 05-28-2009, 05:52 PM

Quote:

Originally Posted by Piggie

Depends on the town and DMA. In Gainesville FL Dish offers locals in HD, more channels than Cox Cable and cheaper.

are you sure you're comparing similar packages? I priced a year ago, and Dish was 20% higher than cable in my area with "like" digital programming packages and DVR rental.

Mockingbird · 05-28-2009, 06:35 PM

Quote:

Originally Posted by Orrymain

I think it's dissatisfaction. My sister is seriously considering satellite and trying to talk me into it. Comcast hasn't added a decent channel to our line up in ages. In fact, they keep taking things away. Then they raise prices. People can't afford cable, and they're frustrated by the channel lineup.

I have to agree totally, It is to the point where I wonder why I pay for cable at all. There was a time late at night there were actually shows on. I am a shift worker and it drives me crazy that even on fridays and saturdays it's all paid infomercials, I would rather see godzilla movies seriously.


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