For years now many have asked us how companies like Comcast and Spectrum are not losing even more cable TV customers. The truth is many cable TV customers cannot cancel and are locked in by their apartment complex or homeowners’ association (HOA).
Over the last 10 years, many companies have made deals with apartment owners and HOAs to keep cable TV customers. These deals force everyone renting or owning space to pay for cable TV and internet as part of the rental contract or HOA fees.
According to iProperty Management, there are 355,000 HOAs in the United States, which represent about 40 million housing units. Even if one quarter of them have a partnership with a cable TV company that would result in 10 million cable TV customers.
There are also millions of apartment units in the United States with an ever-growing number of them bundling internet and TV into the rent. This adds millions of possible cable TV subscribers to companies like Spectrum and Comcast.
With only about 50 million subscribers still paying for cable TV, you can see how even 15 million HOA and apartment customers can help save what is a struggling business model.
Unfortunately, if you rent or own a condo, you may have no choice—cable TV and internet are part of the contract or fees. This helps explain a recent trend of cable TV quiet quitters who still pay for cable TV but don’t use it. Some likely are paying because it’s bundled into their rent or HOA fees.
Hopefully someday everyone will be able to choose and pay for only the services they prefer no matter where they live.