Record 202,000 Canadians cut the cord last year and ditched television service - Action News
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Record 202,000 Canadians cut the cord last year and ditched television service

Canada's major publicly-traded TV service providers lost a record number of subscribers in 2016, according to new research. But those companies are still standing their ground in a world where a cable, IPTV, or satellite subscription is no longer the only way to watch video.

Still, one industry analyst says Canada's incumbents are holding their ground against new ways to watch video

Canada's publicly-traded TV providers lost 202,000 subscribers to their TV services in 2016, new research shows. (Shutterstock)

Canada's major publicly-traded TV service providers lost a record number of subscribers in 2016, according to new research.

But those companies Rogers, BCE, Shaw, Videotron, Cogeco, Telus, and MTS are still standing their ground in a world where a cable, IPTV, or satellite subscription is no longer the only way to watch video, according to consultant Mario Mota.

Those companies lost 202,000 TV subscribers in the past fiscal year, compared to160,000 in the previous fiscal year, according toMota.

Even though that's a significant number, Mota said, it has to be taken within the context ofa market where so-called "over the top"video services like Netflixhave become increasingly popular.

"Given that roughly 11.3 million households subscribed to a traditional TV service at the end of 2016, the 202,000 customers lost last year represents only twoper centof the total market," wrote Mota, a partner with Ottawa-based communications research and consultancyfirm Boon Dog, in a press release.

IPTV growth slows, as cable providers get aggressive

IPTV service providerslike Bell, Telus, and MTSdeliverTV viaaninternetconnection. Subscriber growth to those services grew last year, but at a much slower pace and not by enoughto offset the declining subscriberbase for cable and satellite TV. That helped push the overall number of TV subscribers lower, saidMota.

"The major IPTV providers added almost two times fewer subscribers in 2016 than they did in 2015 due to limited IPTV footprint expansion and competition from the cable companies," he wrote.

Cable TV providers like Rogers are working aggressively to win back subscribers lost to IPTV and satellite competitors, said Mota, by offering deals on bundled home internet and TV packages.

Mota told CBC News that he was able to negotiate "a fantastic deal" on a bundled package with his cable provider this year, "because they didn't want to lose me to Bell Fibe."

The hassle of switching home internet services and consequently, emailservices may be part of the reason that consumers are less willing to switch from cable to IPTV, he said.

"A family that's got five email addresses in the homethat's a pretty big commitment to go through, to have to make that switch," said Mota.

"Being able to use internet to retain customers that way is a huge marketing tool."

Corrections

  • An earlier version of this story said the major IPTV providers added almost three times fewer subscribers in 2016 than they did in 2015. In fact, they added almost two times fewer subscribers.
    Mar 16, 2017 6:44 PM ET