Nearly two million U.S. households cancel cable, satellite TV

Approximately 1.8 million American households canceled subscriptions during the first quarter of 2020, Variety reports.

As Americans disconnect, TV providers are feeling the pain.

With the COVID-19 pandemic sweeping through the country during the winter months, cable and satellite-TV companies experienced a steady thaw of paying customers.

More alarming for cable companies is that the second quarter – with most of the country in lockdown mode – could cause even more hemorrhaging, analysts predict.

The combination of high monthly costs and the disappearance of live sports as unemployment rates roar to a staggering 15 per cent level have caused the steep cancellation rate, according to Wall Street research firm MoffettNathanson.

“At 63 per cent of occupied households, traditional pay TV penetration has reached a level not previously seen since roughly 1995.

“There are now as many nonsubscribing households as there were pay-TV subscribers in 1988,” explained analyst Craig Moffett.

As people dump subscriptions, the growth of cable networks’ affiliate fees is also taking a sharp hit, said UBS Securities analyst John Hodulik.

“We believe the (coronavirus) outbreak could drive modest acceleration in cord-cutting in the lockdown phase but more dramatic declines post-lockdown given the expected recession,” reasoned Hodulik. “The absence of sports should pressure sports nets in the near term as distributors balk at paying high fees.”

The only notable subscription-TV services to add subscribers in the first quarter of 2020 were Hulu + Live TV, which signed up about 100,000 new people, and Google’s YouTube, which increased users by approximately 300,000 to reach 2.3 million, Moffett estimates.

 

 

– dpa/tca/NAN

About Delia Innoma

Delia Innoma is a prolific writer, promoter, artist manager with full professional proficiency in English, German and Igbo languages. She studied accounting and computer programming at the Institute of Management and Technology Enugu and Germany respectively. Delia is also a devoted mother of two and she founded the Diamond Celebrities Magazine. Her sense of responsibility and commitment to the Christian faith are essential forces driving her daily activities.

One Response to “Nearly two million U.S. households cancel cable, satellite TV”

  1. Despite the 1200 dollars stimulus? Some Nigerians will tell u that amount of money is so big. A bottle water in the US is almost 500 Naira and nothing is free. Goverment gave 1200 dollars and your rent per month is 1500 dollars and some Africans are busy going mad

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