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Monday, September 7, 2015

Pay TV Suffers Subscriber Decline

According to at least one report, Pay-TV subscribers declined by a half-million users in the second quarter of 2015. Although it cannot be said for certain, it appears more people are cutting the cord. The Pay-TV stocks sector suffered a loss of nearly $60bn based on the news.

Set-top devices and USB "sticks" let users watch streaming channels such as Crackle and Hulu+, on their TVs and other devices. While some of these channels, considered "premium," have subscription costs, others are free. Not all of the free channels are supported by advertisements, either.

Devices like Roku allow the user to include a list of only the channels he frequently watches, and pay only for the channels he chooses. While recent changes have been made, Pay-TV outlets do not allow "a la carte" pricing. Excepting the price of Internet access, there are no further costs.

Further, original online content from outlets such as Netflix and Amazon Prime have been honored at recent awards events, legitimizing them as competition for the established networks. Netflix recently let go of their EPIX library to invest in original shows.

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