Billion Dollar Loss
By Sean Willis 28 November 2016 - 14:15 GMT
Cable companies could lose $1 billion in the next year to people cutting the cord, a top consulting firm has warned.
About 800,000 cable customers will ditch their subscriptions in the next 12 months, cg42 has claimed. The consulting firm said that this would mean an average loss of $1,248 /annum per customer or $1 billion in just one year.
In their study that was based on an online survey of 1,119 US consumers, cg42 found that average cord-cutters save $104 per month by canceling.
However, a loss of cable subscribers and the revenue that comes with them does not mean completely equal loss in total revenue for the industry as TV providers are more likely to continue to wring more money out for each subscribers.
As many people cancel their cable subscriptions, they are offered with various alternatives and more flexible streaming services. The pioneer is Sling TV, which offers 25 channels for just $20 per month. Other live TV alternatives that are reportedly on the way include Hulu, AT&T and Amazon. There are also the traditional on-demand streaming companies including Netflix, Hulu Plus and Amazon Prime.