Pay-TV Decline Strikes a Cord

Cord-cutting has taken another step from threat toward reality.

US pay-TV providers lost video subscribers in the first quarter, marking the first time the industry has contracted during a traditionally strong period of the year. That brought the rate of subscriber decline to 0.5% over the past 12 months-the fastest on record, according to MoffettNathanson. While the US Census Bureau reported a net decline in occupied households in the quarter, there were 1.3 million household net additions in 2014’s fourth quarter. That suggests some new households may be opting for services like Netflix, Hulu and Amazon Prime over traditional TV, MoffettNathanson says. For pay TV, the future may finally be now.