Cable Continues to Die: Cord-Cutters Sap AT&T’s TV Business

The only reason we have cable in our house is because it actually COSTS MORE not to have it if we want the kind of Internet connection we want.

I never turn cable on. My kids watch Sponge Bob on Nickelodeon but that’s about it. The rest of the time we access everything right through the Roku TV, using apps just like on our phones. It’s just a better delivery system, it’s not completely choked with ads, and there is a huge variety of programming. I am a particular fan of PLUTO TV which is basically a collection of obscure networks (news, cooking, sports, just weird stuff) that is completely free. It’s great.

The cable companies, the media conglomerates, they had it good for a long time. But the captive audience isn’t so captive anymore.

(From The Wall Street Journal)

The report means AT&T lost an even bigger number of satellite-TV and U-verse video customers, a sign “cord-cutters” threaten a broad array of companies that have until recently counted on traditional TV bundles for growing profits. AT&T had 25.2 million video subscribers at the end of the second quarter.

Cable giant Comcast Corp. last month said it also expects to lose subscribers in the third quarter, partly because of customers swapping cable subscriptions for more affordable online substitutes.

The projections suggest DirecTV and its cable peers are all “suffering from the ravages of cord-cutting,” industry analyst Craig Moffett of MoffettNathanson LLC wrote in a note to clients. “DirecTV and Comcast are seeing and responding to the same secular pressures. It is reasonable to expect a weak quarter for the whole Pay TV industry.”

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