Tuesday, May 6, 2014

Was Cord Cutting Overblown

DirecTv dealt another blow against cord cutting in the US with another quarter of subscriber growth.  At 12,000 net additions, the number may not be large but it certainly indicates that households still want their cable television.  Consumers not happy with their cable service may be just as willing to shift from cord to satellite as long as they can continue to get their TV programming. 

Also part of the discussion continues to be whether AT&T will make a serious bid for DirecTv or perhaps Dish Network to enhance and grow its cable platform.   A combined AT&T DirecTv venture would reach 26 mm households, almost as large as a post Comcast Time Warner Cable merger.  With John Malone's interests in DirecTv and Charter, this becomes a very interesting scenario to watch.