Over the past four quarters, Time Warner Cable (NYSE: TWC ) has lost nearly 600,000 television subscribers. There can only be one explanation, right? Cord cutters are finding enough entertainment in the world of Netflix and other over-the-top services.
This is the kind of myopic thinking that can get investors in trouble. The rise of Netflix and fall of Time Warner Cable television subscribers might be related, but it hardly shows us the full picture.
Meanwhile, surveys from Leichtman Research Group show that total pay-TV subscribers are falling. That’s a broader view of the market, but it still might miss pieces of the picture. Last year, it reported that the pay-TV industry lost about 105,000 subscribers. The same firm says the top 13 providers lost 150,000 in the third quarter this year and 190,000 in the first nine months of 2014.
Read More