TV Stocks Decline Quickly after AT&T Admits Cordcutting is a Problem

TV stocks are going to obviously take a serious nosedive when cord-cutting is involved. What is cord-cutting? It has nothing to do with childbirth in this case thank goodness. Instead, this time it has to do with people cutting the cord to their cable and dish service in favor of moving towards other services such as streaming, like Netflix. This drop in subscription has companies worried only a little bit since they tend to have backup plans for this type of thing and, oh yeah, they tend to own at least a good amount of stock in other services that might help them out during the harder times.

Feeling sorry for the cable companies if their stock begins to fall is a little difficult as a consumer when their rates continue to go up and their services stay about the same or become a bit more restrictive. Cord-cutting might be a problem because it could possibly drive these rates up but at the same time it’s a little more liberating since subscribing to other services that aren’t as restrictive or as expensive is a big load off of one’s mind. The decrease in stock value could become a problem however for those that are heavily invested in TV and depend more than a little on the success of those providers that they work so closely with.

Do you as the consumer really care?

Honestly you shouldn’t worry one way or another. It doesn’t mean that cable or dish is going away, and it doesn’t mean that wireless and other services are taking over just yet. It simply means that advertisers and TV execs might be sweating under their collars a little bit since their number of cable viewers is bound to drop despite their best efforts to cease the loss of subscribers.

A lot of those who are 18 and older as of this year aren’t even interested in subscribing to traditional cable or dish, and have been dubbed cord-nevers, meaning that they’ve never once relied on either service. Obviously this puts a big damper on the business but overall it still shouldn’t affect it nearly as much since those aged 55 and older are still going to be depending on dish and cable. Why? Because unlike those that came of age only a decade or so ago those individuals remember the golden age of cable and still rely heavily on it in favor of the streaming services that they might not understand or fully trust for reliable service.

Quite honestly it’s all a matter of preference and in a world where technology continues to grow in leaps and bound as it outstrips what’s come before people want to either join the new world or feel some comfort in what they already know. Cable and dish TV isn’t going anywhere at this point and even as streaming networks continue to rise, slowly, the desire for something a little more simple and a lot more comfortable is going to remain. Cord-cutting is something stockholders might be worried about, not the average consumer.


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