Cable Gets 100% of Net Internet Accountr Additions in 2Q 2019

As has been the case for some years, virtually all the net internet subscriber gains in the U.S. market in the second quarter of 2019 were gotten by cable operators. 

The largest cable and telephone providers in the United States, representing about 96 percent of the market--gained a net 370,000 internet subscribers in the second quarter of 2019, compared to 480,000 subscribers in the second quarter of  2018, according to Leichtman Research Group.

These top broadband providers now account for 99.9 million subscribers, with the largest cable companies having 66.2 million broadband subscribers, and largest telephone companies having 33.7 million subscribers.

About six percent of those subscribers are business accounts, LRG says. 

Broadband Providers Subscribers at end of 2Q 2019 Net Adds in 2Q 2019

Cable Companies

Comcast 27,807,000 209,000

Charter 25,945,000 258,000

Cox* 5,120,000 20,000

Altice 4,168,100 13,100

Mediacom 1,303,000 15,000

WOW (WideOpenWest) 765,500 (400)

Cable ONE 681,762 3,377

Atlantic Broadband** 443,696 14,134

Total Top Cable 66,234,058 532,211

Phone Companies

AT&T 15,698,000 (39,000)

Verizon 6,968,000 (5,000)

CenturyLink 4,750,000 (56,000)

Frontier 3,626,000 (71,000)

Windstream 1,034,300 1,900

Consolidated 783,008 2,288

TDS^ 433,400 5,800

Cincinnati Bell^^ 425,500 (1,200)

Total Top Telco 33,718,208 (162,212)

Total Top Broadband 99,952,266 369,999

source: Leichtman Research Group

U.S. Linear Video Losses Steepen

Though there are changes of market share for every product category, the losses of legacy product accounts and revenues continues unabated in most markets. Consider video services, one of the newer telco products.

U.S. linear subscription TV providers lost at least 1,530,000 net video subscribers in the second quarter of  2019, compared to a net loss of about 420,000 subscribers in the second quarter of 2018, according to Leichtman Research Group. 

Satellite suppliers took a bigger hit than fixed network providers, and DirecTV took the lion’s share of losses.  Satellite TV services lost about 855,000 subscribers in the second quarter of 2019, compared to a net loss of about 480,000 subscribers in the same quarter of  2018. 

Video Providers

Subscribers 2Q 2019

Net Adds 2Q 2019

Cable Companies
Comcast	21,641,000	(224,000)
Charter	16,320,000	(141,000)
Cox*	3,940,000	(40,000)
Altice	3,276,500	(20,800)
Mediacom	747,000	(17,000)
Cable ONE	308,493	(12,118)
Atlantic Broadband**	307,261	(345)

Total Top Cable

46,540,254

(455,263)

Satellite
DirecTV	17,901,000	(778,000)
DISH TV	9,560,000	(79,000)

Total DBS

27,461,000

(857,000)

Phone Companies
Verizon FiOS	4,346,000	(52,000)
AT&T U-verse^	3,704,000	0
Frontier	738,000	(46,000)

Total Top Phone

8,788,000

(98,000)

Internet-Delivered (vMVPD)
Sling TV	2,472,000	48,000
DIRECTV NOW	1,340,000	(168,000)

Total Top vMVPD^^

3,812,000

(120,000)

Total Top Providers

86,601,254

(1,530,263)

The direction of change is not unexpected, by virtually anyone. Perhaps the magnitude of change is not surprising, either. Virtually every legacy product sold by service providers is diminishing in volume, creating a need for creation of new products and revenue streams.