Cable and Satellite Subscriptions are Down; Is Cord-cutting here to stay?

Cord-cutting is here and is very really but still hasn’t inflicted wounds upon the cable and satellite providers as of yet. In the latest research findings by SNL Kagan research firm results show the younger generation (16-34 age demographic) is more likely to reject cable or satellite subscriptions compared to their elders and if the studies are accurate the industry could be in for a bit of a bumpy road.

By the closing end of 2013 cable and satellite providers lost 251,000 subscriptions which only represent a small 0.02% of 110.2 million subscribers. Though the percentage of cord-cutters is small the providers and networks alike are concerned about the younger generation which is more likely to not have cable or satellite subscriptions. Among the 16-34 ages demographic 13% say they have no cable or satellite provider.

Providers are downplaying the fact that the younger demographic is less likely to subscribe to cable or satellite thinking that once they move out of their parents’ homes, they will then subscribe. However research tells a different story, in 2013, housing units in the US increased by a 323,000 last year to almost 115 million. This tells me household penetration of cable or satellite subscribers declined for the year.

During a recent earnings call Dish Network showed signs of taking cord-cutters into true consideration with introducing their new stripped-down virtual TV broadband service. Through the service subscribers would have access to five cable networks, including ESPN and ABC. However the service would be priced far lower than tradition cable or satellite TV packages, giving the providers less revenue something the industry is worried about of course.


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