It looks like traditional pay-TV providers have a new concern: their investors. As cord cutting has grown a growing list of pay-TV providers, such as AT&T, have started to see their stocks fall.
It was recently reported that AT&T lost over 300,000 traditional pay-TV subscribers in just three months. The news has not stopped there. Other pay-TV providers are also expected to lose subscribers. It is projected that over 1 million Americans may have canceled traditional pay TV in just three months.
This has started to raise concerns with investors about how safe these stocks are and what the future of traditional pay-TV is.
Pay-TV providers are not the only ones investors are growing concerned about. The New York Times reports Deutsche Bank has rated Viacom a sell.
One of the main reasons Deutsche Bank listed Viacom as a sell is the fact that it is not on many cord cutting-friendly services. Limited channels on Sling TV and DIRECTV NOW are its only cord cutting streaming options. Viacom channels are not on Hulu, YouTube TV, or PlayStation Vue.
The troubles don’t stop there. Charter recently moved five of Viacom’s flagship channels to its highest priced package making it unlikely most subscribers will have the channels.
If major pay-TV providers cannot keep their investors happy it could force them to make drastic changes in an effort to attract cord cutters. Can they keep their investors happy? If not, how quickly will they be forced to make changes?
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