Cable TV’s Plan to Fight Cord Cutting Is Failing





Scissors cutting a computer wire on gray background (wireless or blackout concept)

Scissors cutting a computer wire on gray background (wireless or blackout concept)For years, cable TV had a simple plan to fight cord cutting. Cable TV wanted cord cutters to subscribe to their slimmer, cheaper TV packages. Now that plan is not working out as originally convinced.

As cord cutting is growing at record rates live TV streaming service subscriptions are slowing down. In the past week we learned that DIRECTV NOW lost over 160,000 subscribers and Sling TV saw its growth down from this time last year.

According to reports, live TV streaming services have about 7 to 8 million subscribers. Yet cord cutting is reportedly at about 35 million Americans, meaning most cord cutters are not subscribing to a live TV streaming service like Sling TV, Hulu, or YouTube TV.

Even more scary is the fact that as cord cutting is speeding up and could easily hit 1.5 to 2 million new cord cutters in the second quarter of 2019, live TV services are slowing down.

Many cable TV companies said that is ok if we lose the TV customers, we will just get them on Internet. Now companies like SpaceX, Amazon, and Starry are rushing to offer new Internet options. Add in 5G home Internet along with Fixed wireless and fiber and sooner than later cable TV will be facing a new phase of cord cutting as home Internet gets the axe.

Cable companies are facing a tough uphill fight: Poor reputations, contracts that limit their ability to rapidly change in a growing market, and customers who would do almost anything to get away from them. This has left cable TV companies jumping to find something that will help them stand out.

The question now is not what will happen to cable when TV customers leave but what will happen to cable companies when Internet competition becomes real in the next 5 to 10 years.

For now, cable TV’s plan to fight cord cutting is failing.

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