The pace of cord-cutting in the United States continues to accelerate, with two major cable companies losing about 1.7 million TV subscribers in just the last six months according to Cord Cutters News. In my latest video we explore this trend and why Comcast isn’t worried about it.
If things keep on this trend, Cord Cutters News predicts the number of TV cord cutters could reach 3.5 million, adding to the 3 million who did so last year.
Despite the significant loss in TV subscribers, the internet business for cable providers is faring much better – as only 298,000 customers dropped their Internet service too. This indicates that most people are retaining their internet service while cutting TV subscriptions. This surprised me given the aggressive rollout of less expensive and arguably superior fiber optic services throughout the United States. But many customers still lack competitive choices for broadband.
Comcast and other cable companies are also capitalizing on bundling services to retain customers. They offer packages that include internet, mobile phone services, home phone service, and even home security, making it hard for customers to switch to other providers.
In regions with competitive alternatives, such as Connecticut, Comcast faces more challenges. My area, for example, has two fiber optic providers (Frontier and GoNetspeed) on top of fixed wireless services from Verizon and T-Mobile and satellite service from SpaceX Starlink. These options allow customers to save money while enjoying similar or better internet speeds and reliability.
Despite the competition, Comcast remains confident. On a recent earnings call they touted the excess capacity in their network, allowing them to handle increased usage and new customers without major upgrades. By the end of 2025, Comcast expects to be 60% overbuilt. Additionally, a large portion of their customer base subscribes to higher-speed tiers, with many opting for 500 megabits or higher, further enhancing their revenue from internet services.
Comcast is also planning to address the disparity between download and upload speeds through their DOCSIS 4.0 deployment. This upgrade will enable symmetrical service offerings, bringing their performance closer to that of fiber optic providers. In some areas, Comcast already offers high-speed services, such as 10 gigabit symmetrical plans, to compete with fiber providers.
But, as the network becomes more of a commodity, cost of service will likely be the most important factor in choosing a provider. The increased competition in some regions and technological advancements benefit consumers by driving down prices and improving network performance.
As more people cut the TV cord, however, the impact on the TV side of the industry will be significant, affecting retransmission fees and the viability of broadcast TV moving forward.