Pay-TV Subscribers Cancel Cable Services
More consumers are canceling their cable pay TV subscriptions in record numbers for a variety of reasons, namely NetFlix and Hulu LLC.
Video subscribers are leaving for the reasons of: a stagnant economy, competition from and Dish Network Corp.,and on line television services. Cable and satellite services are taking a beating on the market which is described as the biggest decline in history by Bloomberg.
Pay TV providers experienced a loss of 380,000 subscribers in the 2011 second quarter and Dish TV lost 135,000 subscribers.Earlier this year Dish kept prices down until 2013 in an effort to retain it’s customer base and not increase prices.
Consumers are opting out due to the financial stresses faced in job losses, loss of homes to foreclosures and various other economic reasons. Also rising prices does not make it more appealing plus viewer choices.
Customers Opting Out of Pay TV Subscriptions
The competition from AT&T and Verizon adding video customers is also a factor in lower cost choices for the public. Comcast, Time Warner, Charter and Cablevision all lost customers this quarter.
Also the obvious reason that it is difficult to maintain growth in a sluggish recession economic climate makes it more difficult to gain any new customers.
Read more at: Bloomberg