Today, financial analyst firm S&P Global Ratings said that they estimate cable, satellite, and telecoms will lose 5.1% of subscribers in 2020 to cord cutting. That number is up from the 3.3% previously estimated.
“We believe there is greater downside risk than upside potential to our 2020 forecast,” credit analyst Naveen Sarma said in a statement.
According to the report, the prices of pay TV services will make the options less attractive to customers while the increasing number of streaming services will draw the attention of those who want to leave traditional TV behind. The analysts also pointed out that new services launching later this year will offer even more options to pull in former cable subscribers.
Cable companies may be able to recover from the drop in subscribers if they can continue providing broadband services to cord cutters, says a report from Market Watch. However, media companies will likely feel the effects of subscribers moving to content streaming this year.
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