The Rise of IPTV is Hurting Cable Companies

More and more Americans are ditching cable and satellite TV in favor of Pay-TV delivered via internet protocol. According to research group IHS, U.S. IPTV providers saw a net increase of 398,000 subscribers in the second quarter, while cable and satellite providers shed 588,000 and 162,000 subscribers, respectively. On aggregate, U.S. Pay-TV providers lost 352,000 subscribers between April and June, as the cord-cutting trend continues.

Even though cable is currently losing subscribers at the fastest pace, it remains by far the most common way of Pay-TV distribution in the United States. By the end of June, 55 percent of Pay-TV subscribers were cable customers, with satellite and IPTV providers holding 34 and 11 percent of the market, respectively.

For the full year, IHS predicts a contraction of the TV market. The total number of subscribers is expected to drop from 100.89 million in 2012 to 100.77 million by the end of this year, suggesting that, while cord-cutting is indeed happening, it is happening a lot slower than some reports are suggesting.