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Report: Weak economy leads to sub loss in Q2

Mon, 09/27/2010 - 8:10am
Brian Santo

The number of pay-TV subscriber households in the United States actually decreased during the second quarter for the first time in years — by about 167,000.

The MVPD business is widely considered to be recession-resistant, but even though the recession technically has been over for more than a year, for many people, today's economics remain harsh, and that's the key reason for the drop, according to In-Stat.

"There are several reasons behind the quarterly subscriber loss," says Mike Paxton, principal analyst at In-Stat. "While growing availability of over-the-top Internet video is spurring talk of mass 'cord-cutting,' this decline is not about cancelling pay TV in favor of Internet video.

"The main driver of these subscriber declines is the struggling U.S. economy and high unemployment," he added.

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