Time Warner Cable Loses 155,000 Video Subscribers

So far in the third quarter, both Comcast and Time Warner Cable have reported video subscriber losses. That in itself would not be unusual, given a market share shift in favor of telcos and satellite providers of late.

Comcast earlier reported a loss of 275,000 subscribers in the third quarter, while Time Warner Cable says it lost 155,000 video subscribers.

Those sorts of statistics sometimes are assumed to be evidence of video "cord cutting," though. It isn't possible yet to make a judgment of that sort, in part because the satellite providers have yet to report subscriber numbers. Only by adding up results at all the leading cable, telco and satellite providers can we determine whether the market is growing, flat or shrinking.

And even if the market is shrinking, as was the case in the second quarter, it isn't completely clear that customers are giving up on multichannel video service for streaming, for over-the-air TV, giving up TV itself, or temporarily suspending service to save some money. It might be years before we can determine whether there has been a permanent shift of behavior, or only a short-term decline because of tougher economic conditions, less new housing construction or a consolidation of households. All of those will put pressure on subscriptions by reducing the potential pool of buyers.

Time Warner Cable - Investor Relations - News Release