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While More People Switch To Streaming TV, Cable Stocks are Plummetting (investors.com)
An anonymous reader quotes Investor's Business Daily:
Shares in Charter Communications plunged after the cable TV firm reported first quarter earnings and lost more video subscribers than expected, also sparking a sell-off in Comcast and Altice USA... Charter said it lost 122,000 video subscribers, nearly triple analyst predictions for a fall of 43,000. Comcast on Wednesday said it lost 96,000 video subscribers, exceeding estimates for a drop of 75,000.... With Friday's sell-off, Comcast stock is down 20% in 2018, with Charter falling more than 24%...
Cable TV firms aren't the only losers. AT&T this week said it lost 187,000 pay-TV customers, including satellite TV subscribers and its U-verse landline business. AT&T's DirecTV Now internet streaming service added 312,000 customers. But AT&T garners much lower profit margins from video streaming.
Cable companies are now raising prices on broadband services to compensate, according to the article.
MarketWatch notes that Charter also lost 100,000 customers in the same three-month period in 2017, calling the ongoing trend "a fundamental shift in consumer behavior."
Cable TV firms aren't the only losers. AT&T this week said it lost 187,000 pay-TV customers, including satellite TV subscribers and its U-verse landline business. AT&T's DirecTV Now internet streaming service added 312,000 customers. But AT&T garners much lower profit margins from video streaming.
Cable companies are now raising prices on broadband services to compensate, according to the article.
MarketWatch notes that Charter also lost 100,000 customers in the same three-month period in 2017, calling the ongoing trend "a fundamental shift in consumer behavior."
A good time to buy in. There's too much money at play for these companies to simply fold up.
Only the State obtains its revenue by coercion. - Murray Rothbard
Bullshit, if in a 3rd world country I can get Gigabit fiber + TV + unlimited data 3G stick + mobile subscription with unlimited data plan, all for 25 bucks a month, then clearly something's very fishy in the USA.
...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
If they hadn't been so greedy in the past, maybe fewer people would have cut the cord.
The main companies are still seeing high profits. Their CEOs are still making 10's of millions of dollars per year.
When the going gets tough, they just charge customers more to protect their profits knowing the customer is screwed since the market lacks true competition.
I cut the cord in April, 2009. I paid $46.95/month for internet. Now I pay $80.70/month. Service hasn't gotten any better during that time.
"Action without philosophy is a lethal weapon; philosophy without action is worthless."