Ovum has released its 3Q16 subscriber growth figures for fixed voice, fixed broadband, and pay TV for the US, as captured in Ovum’s World Broadband Information Service (WBIS). Ovum notes that a triple cord-cutting threat – the loss of subscribers in all three core fixed services – continues to loom over the US.
Source: Ovum WBIS
“Cord-cutting started in landlines and gave way to cord-cutting in pay TV in the US. We are now entering the realm of triple cord-cutting. This is the reason why US service providers are diversifying their business away from their core services towards the path of becoming digital service providers. This is also the reason why M&A is likely to continue in the US market.” Kristin Paulin, Senior Analyst.
“The decline of subscribers in telco core services is by no means a US-only trend. Fixed voice subscribers are declining in multiple countries tracked by Ovum worldwide. Fixed broadband and pay-TV declines are also beginning to make an appearance.” Kamalini Ganguly, Senior Analyst.
Triple cord-cutting represents a shift in communications services, and service providers need to chart new service, bundling, and pricing strategies. It presents an opportunity for telcos and cable companies to explore new types of services – such as own-OTT video services and via partnerships, which Ovum tracks. Own-OTT video services are sometimes bundled with the core fixed broadband service, allowing service providers to retain some core services while introducing new revenue streams. However, the triple cord-cutting trend also shows why it is important to have a relationship with mobile – whether owned or as an MVNO – for future services. Ovum is tracking new types of bundles with mobile broadband.
Contact Adam Clarke in the Ovum PR office for more information on these trends, or speak to Kamalini Ganguly or Kristin Paulin.
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