Cable Companies Besting DSL For Internet, But Continue Dropping Pay TV Subscribers

Subject: General Tech | December 1, 2015 - 07:30 PM |
Tagged: networking, cable tv, cable isp

A bit before the week of Thanksgiving and Black Friday, I came across a pair of interesting articles (linked below) over at DSL Reports that had some interesting figures for the state of broadband and cable TV. While cable companies continue to rule the roost when it comes to the ISP subscriber side of things, they are also steadily bleeding cable TV subscribers. According to the numbers (which they got from Leichtman Research), the third quarter of 2015 has been simultaneously the worst quarter ever for telcos who lost both internet and cable TV subscribers, it was the best quarter (of least cable TV losses) since 2006.

On the broadband side of things, of the top seventeen providers Leichtman Research provided numbers for, cable companies brought in 787,629 new subscribers while the telephone companies lost 143,338 of their subscribers (likely customers on older forlorn CO-fed DSL tech). Cable companies are maintaining a healthy lead in total subscribers as well at approximately 54 million versus 25 million telco subscribers.

 

Broadband internet subscribers at end of Q3'15
  Subscribers YTD Net Subscribers +/- in Q3
Cable 54,262,565 787,629
DSL 35,246,382 -143,338

Not too bad considering all the bad press the cable companies have thrust upon themselves with, for example, Comcast rolling out 300GB caps across the US and their notorious (or should I say infamous) customer support departments. Somehow only CableOne and WOW lost subscribers in Q3.

At the end of Q3'15 there were 94 million cable television subscribers shared among the 12 top providers (eight cable, two satellite, and two cable). Collectively, the companies lost 190,693 TV subscribers versus last quarter which is an increased loss YoY as well (155,000 in Q3'14). It should be noted that if Dish's Sling TV subscriber numbers are not taken into account, it is a 345,000 decrease in pay TV subscribers.

Cable TV Subscribers at end of Q3'15
  Subscribers Net Subscribers +/- in Q3
Cable 48,809,907 -144,693
Satellite 33,479,000 -3,000
Telephone 11,678,000 -49,000

The cable companies lost 144,693 subscribers in Q3 making it an improvement in that it is the least amount of subscribers lost since 2006. For example, in the same quarter last year the cable companies lost 440,000. Comparatively, the telephone companies only lost 49,000 TV subscribers, but it was their worst quarter yet when it comes to losing TV subscribers. Charter, Direct TV, and Verizon were the only three of the listed companies to actually pick up subscibers this quarter while everyone else lost them.

 What do you think about the numbers? Will the cable beheomouths continue being the dominant source of internet for the US? Will traditional cable/paid TV ever make a comeback, and if not just how many subscribers will these providers have to lose before they embrace new models that support à la carte and even cord cutting/streaming only?

Source: DSLReports

Time Warner Cable Increasing Modem Rental Fee

Subject: Editorial | July 30, 2013 - 07:08 AM |
Tagged: time warner, Internet, cable modem, cable isp

According to the Consumerist, cable ISP Time Warner Cable is increasing its modem rental fee to $5.99 per month. The company initially instituted a $3.95 rental fee in October of last year, and it is already ratcheting up the fees further for the same hardware people are already using.

The new rental fee will be $5.99 per month for most accounts (it seems the SignatureHome with TV is exempted from a rental fee), which works out to $71.88 per year. For comparison, the previous $3.95 fee would be $47.4 a year. As such, Time Warner Cable is looking at a healthy increase in revenue from the higher fee, which ISI analyst Vijay Jayant estimates to be around (an extra) $150 million according to Reuters. That’s a lot of money, but even zooming in to the per-customer numbers, it is a large increase. In fact, with the $71.88 total per year in rental fees for the modem, it is now cheaper to buy a new DOCSIS 3 modem outright.

For example, the Motorola SB6121 is on TWC’s approved modem list and is $69.45 on Amazon which would save you about 20 cents a month in the first year, and whatever the rental fee is in later years. I have been using this modem (albeit on Comcast) since February 2012 and I can easily recommend it. Things can look even better in favor of buying your own modem if you are on a slower tier and can get by with a DOCSIS 2 modem, some of which can be purchased for around $40 used.

Time Warner Cable Increasing Modem Rental Fees.jpg

Time Warner Cable further claims that it has increased speeds on its most popular internet service tier and added additional Wi-Fi hotspots for customers over the past year alongside the fee increase announcement, but unless you are on its “most popular” tier, its hardly enough good news to outweigh the fee increase and is likely to only further the outrage from customers who have already attempted class action lawsuits over the $3.95 fee.

Fortunately, there are options to bring your own modem and it is a simple process if you cannot justify the fee increase out of principle or just want to save a bit of money.

Source: Consumerist