http://www.marketwatch.com/story/cable-companies-are-adding-subscribers-again-2016-04-28
Cable companies are adding subscribers again
What a difference a year makes.
Cable TV companies, beset last year by fears that cord-cutting would decimate
their business, have bounced back in the first quarter, with all the major
players reporting subscriber gains.
On Thursday, Time Warner Cable Inc. and its soon-to-be parent Charter
Communications Inc. — pending federal approval — said they each added video
subscribers in the quarter. Time Warner Cable added 21,000 subscribers as
revenue for the segment increased 6.4% to $100 million. Charter said it added
15,000 subscribers.
“The quality of the video subs is strong as well once again this quarter. I
think that’s been true for all of our recent quarters,” Time Warner Cable chief
Robert Marcus said during a call with analysts. About 83% of the connections
the company added were for its “big bundle” offering, he said.
Cable subscriber numbers this quarter form a stark contrast with the
year-earlier period, when cord-cutting fears were rampant and subscriber
numbers shrinking. Comcast Corp. on Wednesday said it added 53,000 Xfinity
video subscribers in the quarter. In the same quarter a year ago, Comcast
reported losing 8,000 video subscribers.
Verizon Communications Inc. said last week — though subscriber numbers slowed —
it still added 36,000 Fios video customers during the first quarter and Dish
Network Corp. said it added 657,000 new pay-TV subscribers.
Stocks are reflecting greater investor confidence. Time Warner Cable shares
have gained about 14% in the year so far, while Comcast is up 8% and Viacom is
up 3%. Charter is up 15% and Verizon is up 10%. The S&P 500 has gained just
1.6% in the same period.
To be sure, the companies are taking steps to protect their business.
Comcast, which has been publicly scrutinized for poor customer service in the
past, has invested in customer retention. The cable provider has bolstered its
customer service division, adding jobs and even allowing customers to
troubleshoot certain issues themselves. And Time Warner’s Marcus his company is
“taking bold steps to transform the business,” such as a video experiences that
reduce the need for calls to the company’s 800-number and installation
appointments, among other
The Industry continues to face evolving consumer habits and demands. Along with
adapting to push back against traditional cable bundles, companies are trying
to fend off the push for government mandates to change and get rid of
proprietary set-top boxes.
Though Comcast recently said it would release an app for the Roku and Samsung
smart TV as an alternative to its set-top box, the company has said it is proud
of its X1 Internet-connected box, which increases viewers’ time spent watching
TV and the likelihood they’ll stick with Comcast.
Network operators seem to still be struggling a bit. Viacom, which controls
Nickelodeon and MTV, reported on Thursday that domestic affiliate revenues
dropped 2%, reflecting a modest decline in subscribers. And analysts are
certainly anxiously awaiting news on subscriber numbers from Walt Disney Co.’s
ESPN, which last year suffered heavy subscriber losses.
