Cord Cutting Accelerates as 150,000 Cancel Cable Pay-TV Service

Cord cuttingcutting the cord, and cord shaving is “a pattern of viewers cancelling subscriptions to a subscription TV service, dropping expensive pay television channels or reducing the number of hours of subscription TV viewed in response to competition from rival media”.

As a market trend, both Nigeria and U.S have entered the market of Pay-TV service. For example, African Cable Television (ACTV), a Nigerian-owned multi-media company that offers a Direct to Home (DTH) pay-TV service, has entered the Nigerian broadcast industry with determination to push its way into the pay-TV market.

The ACTV, as it is pronounced “Active,” is ready to offer both local and worldwide multi-media entertainment to subscribers in Nigeria and internationally. With an extensive range of channels in four particular bundles, ACTV says it might provide every one of its channels that will be accessible to all subscribers who sign up to the service between now and around December 31, under a promotion membership package for a period of one month.

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For the first time, Cord cutting is stepping up as many people in the U.S. move from one Internet services to another, such as Netflix, Hulu and YouTube to watch their favorite TV service programs.

Around 150,000 pay-TV users in United States of America canceled their video subscription services in the last three months that ended June 30, according to the assessments distributed on Friday by Leichtman Research Group.

Pay-TV subscribers lost about 25,000 subscribers during the same time period a year ago, Leichtman said.

In addition, companies like Sony, satellite-TV providers, Dish Network and similar companies like direct TV have announced measures to initiate pay-TV systems that will transmit channels over-the-Internet and provide smaller, less expensive packages to the customers.

Sony and Dish Network said that their idea is to attract younger subscribers who have so far never signed up for the conventional TV service and do not have to watch TV listings online.

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According to reports from Mashable, Time Warner Cable lost the most with 182,000 subscribers, followed by Comcast Corporation, the biggest Internet Corporation in US with over 81,000 customers, as confirmed by Leichtman. Comcast is seeking for permissions from the controllers of the Internet in US to buy Time Warner Cable, the industry’s second-highest, for $45 billion.

AT&T, with its U-verse fiber-optic TV service, got the most subscribers with 216,000 new users, Leichtman said.  AT&T is seeking for permission to buy satellite-TV provider DirecTV, which lost 28,000 subscribers, for $48.5 billion.

Although, the battle to consume the small fish continues, but the 13 greatest pay-TV service in the U.S., which accounts for around 95% of the business, reached 95.3 million U.S. homes with a pay-TV services, as reported by Leichtman’s evaluations. That compares to 115.6 million U.S. homes with no less than one TV set, Nielsen reported.

Bruce Leichtman, President and chief analyst at the research company, anticipates that the business will turn around soon and reverse some of those disasters and modestly embrace new subscribers during the last three months of the year.

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