Next Economic Downturn Could be Death Knell for Some Pay-TV Operators, TDG Says
Legacy pay-TV operators need to "stress test" their business models and work on liquidity and cost-cutting plans now, before the next economic downturn, The Diffusion Group senior adviser Joel Espelien blogged Tuesday. He said subscriber loss trends show the industry…
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is unequivocally unhealthy, with declines to come regardless of whatever steps -- like promotions, discounts or bundles -- management takes in response. But the industry "is barely treading water" now in a strong economy with low unemployment, and today's manageable subs losses will likely accelerate -- perhaps to levels like 250,000 per quarter -- in the next serious downturn, he said: That could leave some weaker or heavily indebted pay-TV companies facing bankruptcy or insolvency.