Cord cutting is taking its toll.

This is a topic that was discussed for a long time. The damage is starting to take its toll. We are seeing the two largest cable operators facing another loss from last year.

It is a trend that really having an impact. The two largest operators are forecast to lose 4 million subscribers in 2025.

This would be a drop of about 5%, which is an accelerating trend.

In the US, it was not too long ago where there were more than 100 million cable subscribers. The loss, in 2024, was 1.5 million for these two companies.

Source

U.S Cable Companies To Lose Subscribers in 2025

This has an effect throughout the entire industry. Fees paid to the networks by the cable companies can really add up. Obviously, if the number of subscribers are declining, these entities are going to look at what they pay out.

In fact, over the past few years, we have seen disputes between the carriers and the networks. Some regional sports networks were dropped (often temporarily) as the negotiations hit a snag.

Could this cause an even bigger ripple effect?

A company like ESPN could be in trouble. Of course, that network is looking to go direct, meaning it could put a hurting on the cable companies. Sports is one of the pillars that keep people returning to cable.

If viewers can get that elsewhere, it is further incentive to get rid of the cable bill.

Cable News Crash

One of the things I am watching is the impact upon cable news. We have covered some of this industry over the last two years so I will not dive too deep.

A component worth noting is the fact that there are some healthy salaries associated with these networks. We might be seeing a massive hit to revenue if Big Pharma is banned from advertising on television. Almost 70% of the ad revenue for cable news channels come from these corporations.

When the money starts to dry up, what do they do? CNN and MSNBC are already seeing a numbers decline. In fact, this is true for most news organizations. Even the mainstream nightly newscasts see smaller numbers as compared to the decades in the past.

Essentially, this becomes a chicken or the egg situation. Who is going to take the other one out? If the networks can make streaming work, they will prevail. However, the cable companies could affect something like ESPN, since it has the highest carrier fees of any channel.

Expanded Choices

Consumers have a lot more choices than in the past.

There was a time where households only had a few channels. Cable expanded this greatly to the point where people had hundreds of channels.

Eyeballs are going all over the place.

Streaming services such as Disney+, Netflix, and Hulu have garnered share of the market. Then we have YouTube, which is the leading service, much of it driven by user uploaded content.

Smaller services such as Tubi and Roku are starting to have an effect.

Then we have social media platforms such as X and Faceook/Instagram, where people (companies) upload videos. Many turn to these platforms for news and information.

Ultimately, the Internet will win. There is no need for cable in a world where the "pipes" are plentiful.