Spring may still be a few weeks away, but in the pay-TV industry, early signs of renewal have sprung.
Comcast recently made headlines when the company announced strong subscriber growth in 4Q15. The company added 89,000 basic video subscribers during this time, which was its best quarterly performance in eight years. The company also added 460,000 high-speed data connections.
Time Warner Cable (TWC) also made positive headlines when the company announced it added 54,000 new video subscribers in 4Q15. This was enough to offset its cable losses from earlier in the year. The company added new TV subscribers for the first time since 2006, which is an encouraging sign of things to come for the organization.
This warrants celebration in the cable television industry, which has been struggling for quite some time with fears about cord-cutting and doubts about the viability of cable TV. The industry query became: Is cable TV still an enticing product for consumers? The answer, as these two companies are proving, is a resounding yes. Demand for over-the-top content may also be surging, but consumers are still buying cable video subscriptions. Apparently, streaming content and traditional cable can coexist.
Still, a sound strategy for cable operators would be to take these good tidings in stride while continuing their efforts to develop innovative solutions that are attractive to TV subscribers. Now’s the time to capitalize on this fourth-quarter momentum and spring ahead against all comers.
We want to know: How did your company do last quarter? Are you excited about the year ahead?