The Cable Business Is Finally, Really Getting Killed By The Internet

pay tv tableThis table shows subscriber additions and losses over the last 12 months.

After years of premature declarations of the death of pay TV, it looks like it’s actually starting to happen.

In the last twelve months pay TV — cable, satellite, and fibre — lost 80,000 subscribers, according to Leichtman Research Group, via Janko Roettgers at GigaOm. This is the first time the pay TV business lost subscribers like this.

Bruce Leichtman, head of Leichtman Research, attributes some of the losses to Internet video services.

“First-time ever annual industry-wide losses reflect a combination of a saturated market, an increased focus from providers on acquiring higher-value subscribers, and some consumers opting for a lower-cost mixture of over-the-air TV, Netflix and other over-the-top viewing options.”

Roettgers says this is particularly noteworthy because Leichtman has been a cord-cutting sceptic.

While cable isn’t going to suddenly drop dead, it sure looks like Netflix, Amazon, and broadcast TV are providing a solid alternative to paying ~$60 a month for cable television.

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.