Friday, October 23, 2020, 12:11 GMT
On the conference call, AT&T CEO John Stankey expected that millions more would stop using paying cable TV services.
As of the end of 2019, there were about 91 million American households using paying cable television services. To will the number of paying cable service customers, Stankey estimates that there is already a long way to go. He claims that “we will see a time of peace” as the number of subscribers using pay cable TV declines to 55 to 60 million. “Stankey said that most of these families are sports lovers.”
For a sector that has suffered long-term subscription losses, this is a bleak prospect. The number of pay TV viewers in the United States was about 91 million at the end of 2019, of which about 8 million had registered for packaged streaming TV platforms such as Hulu and YouTube TV. In the first half of this year, about 3.5 million cable TV viewers discontinued their platforms, according to figures.
While AT&T, Comcast, Charter Communications, and other providers of cable services are focused on delivering Internet services to their companies, cable channel owners are especially vulnerable. This is because the channel is stopped by more customers , meaning reduced rental rates for customers, and is an important source of revenue for operators of cable TV networks. In order to plan for the future, Stankey added that AT&T is working on creating a new HBO Max video entertainment service.
The firm lost another 590,000 cable TV subscribers last year, AT&T said on Thursday. With the growth in market turnover, AT&T has been considering selling much of its DirecTV satellite TV business.
The assertion by Stankey indicates that there is a drop in the number of consumers willing to pay for the typical package of hundreds of cable channels.
How soon the cable industry will bottom out remains to be seen. Kagan Research estimates that paying cable TV subscriptions would decline to 59 million by 2022.
Kagan Analysis data indicates that the pay cable market will lose approximately 11 percent of its conventional subscribers by 2020, while the losses are 6.5 percent and 3 percent in 2019 and 2018.
More and more low-cost streaming platforms like Netflix have disrupted the pay-cable industry. According to analyst Geetha Ranganathan, the epidemic has postponed sports games, led to higher unemployment rates, and prompted “fans to pinch cable TV.”