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Cord-switching to blame for cable’s woes

August 06, 2012

While many in the cable TV industry are starting to believe that cord-cutting is not the threat once thought, US research firm Parks Associates warns that another threat is emerging which is just as dangerous: ‘cord-switching’.

Jim O’Neill, research analyst at Parks, observes that cablecos in the US continue to lose video customers, with 4.5mn evaporating since 2008 and another 1.38mn likely to disappear by the end of the year.

However, IPTV and satellite operators continue to see their numbers grow: AT&T and Verizon added some 5.5mn new subscribers between 2008 and 2011, while Dish and DirecTV added another 2.55mn – together equal to roughly 3.55mn new pay-TV subscribers across all platforms.

Parks warns that the satellite operators’ glory days may well be behind them, predicting that Dish and DirecTV could see subscriber losses of 1.3mn or more through 2017, while cablecos lose at least 3mn.

From the article, "Cord-switching to blame for cable’s woes" by Jamie Beach.

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