Saturday, December 31, 2011

No Significant Cord Cutting Yet, But Maybe Serious Cord Avoidance

You can typically get a good argument about the imminent danger of video cord cutting (people giving up their entertainment video subscriptions) just about any day. Lots of observers warn about people substituting online and other sources for their TV and movie viewing, but a substantial number also would argue that there is a relatively insignificant amount of that sort of activity at the moment.

So far, the numbers seem to be on the side of doubters. Keeping matters in perspective, Comcast Corp., lost 442,000 video subscribers in the first nine months of 2011, fewer than in the same period last year. But Comcast also has about 22.4 million video customers and 49.4 million accounts if you include buyers of Comcast voice and high-speed broadband products.

Time Warner Cable Inc. lost 319,000 over the same period, according to the Wall Street Journal. Losing cable customers

But at the end of the third quarter of 2011, Time Warner Cable had 11.7 million video customers and 26.2 milliion buyers of its video, voice or broadband products.

Also, losses at cable companies are mostly defections of customers to rival satellite or telco providers, rather than outright defections from the ranks of video service providers. So the actual amount of abandonment arguably remains fairly low. No Significant Cord Cutting Yet, But Maybe Serious Cord Avoidance - Carrier Evolution

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