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Cord-Cutting in America May Have Already Peaked (fool.com)

An anonymous reader quotes the Motley Fool: Cord-cutting has been a massive thorn in the side of pay-TV distributors and television media companies for nearly a decade. After U.S. pay-TV subscribers peaked in 2010 at 105 million households, about 14 million homes have cut the cord, according to a report from Digital TV Research. The trend has only accelerated in recent years. 2018 saw nearly double the amount of cord-cutting over 2017, according to Leichtman Research.

But 2018 might've been the pay-TV industry's worst year for cord-cutting. The U.S. will lose fewer pay-TV subscribers this year than last, according to Digital TV Research. And the research firm suggests annual losses will continue to decline next decade.

7 of 161 comments (clear)

  1. Maths! by Anonymous Coward · · Score: 5, Insightful

    "The U.S. will lose fewer pay-TV subscribers this year than last, according to Digital TV Research. And the research firm suggests annual losses will continue to decline next decade."

    Right. If you have a million customers and you lose half of them one year, indeed the losses you experience the next year from the half million remaining cannot exceed the half million you already lost since you only have half a million left. I know that's vastly oversimplifying the issue, but indeed if you have a smaller pool of customers and that pool shrinks each year, statistically you're going to suffer fewer losses. Less people to cancel plus the more you lose you come closer and closer to finding your solid "base" that make up your truly loyal customers--for better or worse.

    Whether this base of loyal customers is enough to keep the sinking ship from sinking faster? Well, that's yet to be seen.

    1. Re:Maths! by gtvr · · Score: 4, Insightful

      Also how many new subscribers are they gaining? I expect kids these days aren't signing up to start with, so they can't cancel something they never started using.

    2. Re: Maths! by omnichad · · Score: 3, Insightful

      If saving money is denial, then I don't want to face the truth.

    3. Re: Maths! by pr0fessor · · Score: 4, Insightful

      When someone says I don't watch TV most likely what they mean is I canceled my cable or satellite TV. It's less denial and more like when people call tissues kleenex even though it's a specific brand name. They watch netflix on the TV but cable and satellite has been just TV to them for so long that they don't associate the two.

      That being said I canceled my cable TV service a long time ago and though I still watch TV it just costs me less. I don't mind loosing sports and other channels I never watched to begin with. Probably the most significant change is I don't get a bunch of commercials and I can watch it on my own schedule.

      I had cable for the sports channels that my sons enjoyed but when they moved out I realized I really didn't watch that much TV and that expensive cable service was burning a hole in wallet so I canceled it and got a netflix account. Of course netflix is more convenient and has no commercials so I enjoyed it more and now I actually watch more netflix and hulu than I did cable.

    4. Re: Maths! by Anonymous Coward · · Score: 2, Insightful

      Even if you are watching streaming video, this is not necessarily TV broadcasting, as you don't watch your show in sync with all the others watching the same show.

      Yeah, but that's been a thing since VCRs appeared in the 1970s. Watching out-of-sync isn't the same as not-watching-TV. Society has been slowly getting used to the idea that not everyone watches the same things (or at the same times) for a few decades now, and it's not really related to whether or not people are watching something. Streaming video (such as youtube) is TV, 100%. It's not even close to not being TV.

      so is watching old VHS, Super-8-movies or a DVD, which you probably won't call "TV" either.

      Nearly everyone would call that watching TV.

      Television means that you watch in realtime some programming that is created at another place

      No, it stopped having to be realtime in the 1970s. If you taped a Doctor Who episode on a 1979 evening and then watched it the next day, you were watching TV, at least in the parlance of the times. Everyone watching you would say you're watching TV.

      So stop calling Netflix, Hulu, YouTube, DVDs, pirated movies and shows, etc. TV.

      I'm not going to stop calling watching TV watching TV. It's still watching TV and we're not going to completely change the entire meaning of the language just to accomodate a religious fringe group who is weirdly obsessed with lack-of-timeshifting. The only people to whom the issue isn't completely irrelevant are sportsfans.

      If you're argung from a sports-specific viewpoint, then just come out and say it. But you'll still be wrong. It's still TV even if it's last night's game.

  2. Well... by MitchDev · · Score: 3, Insightful

    The cable companies saw the writing on the wall and increased Internet prices to make up some of the difference.

    And with all the new, separate streaming services programming has gotten fragmented and aggregators like Netflix are losing content left and right that all these companies want to keep exclusive to their own streaming services which leads to the al a carte people said they wanted, but also leads to death due to bloodloss from a thousand smaller cuts

  3. Re:It's too much of a PITA by Zocalo · · Score: 3, Insightful

    People asked for All La Carte TV... now they can get it. Let's see if they enjoy it as much as they thought they would.

    People can get "something" a la carte, but I don't think that "something" is quite what they wanted. The preferred a la carte approach was meant to be that you go to single provider (whether that's cable like Comcast, or online like Netflix doesn't matter), tick all the channels/shows on their menu that you want to subscribe to (or pay as you go per movie/episode, again, doesn't matter) and you have everything you want. One supplier, one bill, all the shows you want, and - most importantly - none of the ones you don't just because they happen to be part of a bundle. As a bonus, if that could be without having to endure any more ads than strictly necessary to keep the shows in production as well, so much the better.

    I don't see this fragmentation is going to last. It's death by a thousand financial cuts; there's no way I'm going to subscribe to a service for a single show; I'll get that from torrents, and I suspect I'll not be alone once more people realise how much it's costing them for all their various subscriptions. That's going to make it very difficult for smaller providers with only a few shows so I expect cross-licensing to start appearing soon enabling the larger players like Netflix or Amazon Prime to provide shows for people that don't want any of the CSI shows but do want the new Trek, for instance. Better for CBS to have a slightly smaller slice of the pie than no slice at all because enough a viewers decided they'll just torrent the one CBS show they want.

    --
    UNIX? They're not even circumcised! Savages!