From its launch in the 1960’s through the start of the new millennium, cable has been a major player in the advertising world; however, that trend is changing as users leave the service.
The strengths of cable have always been its combination of great reach and targeting options through a menu of shows. But the mix of rising subscription costs, on average climbing by over 70% since 2000, and the growth of competitive video options (Netflix, Roku, Amazon Prime Video), has caused a decline in cable subscribers.
In the first quarter of 2018, the cable industry saw a decline of over a ½ million subscribers. While not a new trend, it is increasing year-over-year. In the first quarter of 2017, the cable industry saw a drop in the subscriber base of 412,000. Comparing 2017 and 2018, the loss increased by almost 20%.
By the end of 2018, the number of homes without a paid cable subscription will exceed 25% (Statista).
What is driving cable’s continued loss in paid subscribers?
- While cable costs have increased, median wages have remained the same or dropped, forcing consumers to find alternative entertainment options.
- Streaming services continue to attract new viewers.
While cable was losing subscribers in Q1 2018, services like Netflix and Roku were growing. During the same time, Netflix added over 7 million subscribers to its streaming service. In addition, Roku reached a new record, streaming over 5.1 billion hours of content, up 50% year-over-year.
Are you looking for an alternative to cable advertising? MANSI Media can help by providing access to the top hyper-local properties, in print or digital, throughout the country. Let us help you simplify your advertising process with a single phone call (717-703-3030) or email (sales@MANSIMedia.com).
Interested in reading more about the cable industry? Check out the links below.
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