(NY DAILY NEWS) – Americans are cutting the cord and TV providers are feeling the pain.
The combination of high monthly costs and the disappearance of live sports as unemployment rates roar to a staggering 15% level have caused the steep cancellation rate, according to Wall Street research firm MoffettNathanson.
“We believe the (coronavirus) outbreak could drive modest acceleration in cord-cutting in the lockdown phase but more dramatic declines post-lockdown given the expected recession,” reasoned Hodulik. “The absence of sports should pressure sports nets in the near term as distributors balk at paying high fees.”
The only notable subscription-TV services to add subscribers in the first quarter of 2020 were Hulu + Live TV, which signed up about 100,000 new people, and Google’s YouTube, which increased users by approximately 300,000 to reach 2.3 million, Moffett estimates.