Number of cable TV subscriptions

The proliferation of high-speed internet connections in the United States has harmed cable TV subscriptions in recent years, as consumers can now watch TV shows on networks' websites or through streaming services such as Netflix or Hulu. This factor and reduced per capita disposable income caused cable subscriptions to decrease for the first time in 2011 since cable's inception. Significant price reductions in high-speed cable connections, video recording and distribution equipment have enabled video streaming sites on the internet to proliferate over the past decade. Consequently, cable TV has experienced growing competition as more consumers have opted to watch online entertainment and forego a monthly cable bill. Nevertheless, the decline of cable TV has been slow; many major cable providers offer on-demand and recording services (such as DVR), which can compete directly with internet streaming's ability to be watched at any time.

The recession in 2008 and 2009 lowered demand for entertainment services such as cable TV, causing growth in the number of cable TV subscriptions to slow considerably during this period, including growth of just 0.6% in 2009. Unfortunately for cable providers, slow growth turned into a slow decline in the years following the recession. According to IHS Technology, a global information company, the United States is one of the largest markets for streaming media players, dampening demand for cable TV subscriptions. As more households have streamed media via alternative sources, many have considered cable TV subscriptions obsolete. Additionally, while cable TV companies continue to control a significant share of the total cable and satellite market, which enables these companies to potentially lower their prices to compete with internet-based TV options, they will still grapple with the decline in cable TV subscriptions in the short-term and long-term. The COVID-19 pandemic also accelerated consumers' switch to cable as major networks created streaming services to capitalize on the trend. As a result of increasing competition, the number of cable TV subscribers is forecast to decrease an annualized 4.6% over the years to 2025.