“Tectonic Shift” Ahead for Media Industry Due to Cord Cutting
There’s a quiet consensus emerging in the hallways and boardrooms of American media companies that about 25 million U.S. households to cancel their pay-TV subscriptions over the next five years, reports CNBC.
The CNBC report adds: “This is on top of the 25 million homes that have already cut the cord since 2012. At least three major media companies now expect pay-TV subscriptions to stabilize around 50 million, according to people familiar with the matter, who declined to speak on the record because their company plans are private.
“The projected decline in subscribers will mean a drop of about $25 billion in cable subscription revenue plus associated advertising losses for the largest U.S. media companies.
“This assumption has created a tectonic shift in the media industry.”
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