Groucho Marx once said in jest: “I must say I find television very educational. The minute somebody turns it on, I go to the library and read a good book.”
According to the research firm SNL Kagan, the number of U.S. cable, satellite and telecom television services subscribers declined in the second quarter of 2010, which is the first time ever, reports Yahoo! News
The television market lost 216,000 customers compared to the gain of 378,000 one year ago. The current number of total subscribers fell to 100.1 million in the second quarter.
“Although it is tempting to point to over-the-top video as a potential culprit, we believe economic factors such as low housing formation and a high unemployment rate contributed to subscriber declines in the second quarter,” said SNL Kagan analyst Mariam Rondell, reports Investors.com
This could be the beginning of a new trend where subscribers turn to Internet-television for their programming. If it continues, cable companies may have to lower their prices or adapt to the evolution of television.