It’s that time of year again where Q3 reports are revealed for the major players in the cable space, and some of the results may be a little daunting.
The telecom world was buzzing last week after AT&T, who is seeking to get ahead of the cable game, announced it expected to lose 390,000 traditional subscribers while adding 300,000 lower-value customers on its over-the-top DirecTV Now service, for a net loss of 90,000.
Analyst John Hodulik expects the entire cable industry to lose 1 million subscribers in Q3, the first time it’s hit that milestone, as cord-cutting continues to gain steam as streaming builds momentum, he wrote in a note, reported out by Investor’s Business Daily.
This is a small increase from last quarter on the amount of subscribers that the industry lost, but analysts see this as a sign that cord-cutting isn’t going away.
While Comcast previously defied the industry trends by racking up new subscribers, they still anticipated losing around 150,000 subscribers in Q3 due to the impact of hurricanes on Texas and Florida as competitors like AT&T offered substantial deals during that period.
Comcast however has come up with a tactic to try and lessen the blow of losing customers according to the American Cable Association.
The trade association claimed in a FCC filing that Comcast is using its ownership of regional sports networks to prevent smaller operators from selling a package combining low-cost cable of mostly broadcast channels with broadband internet.
The claims above and Comcast’s newly launched Instant TV service paints an increasingly complex picture of how companies are competing to meet consumer demand and still make a profit.