Netflix continues to see surging subscribers worldwide
Cord-cutting is gaining even more traction, as we can see by the numbers Netflix (NFLX) recently announced for 1Q18. The video streaming giant said it added 7.3 million subscribers worldwide in the quarter, continuing with its hot streak over the last few quarters.
Amazon (AMZN) recently said it had more than 100 million Prime members, which includes access to its streaming service. Both Amazon and Netflix have spent aggressively over the last couple of years to acquire and create content.
Comcast and Charter continue to see declining subscribers
Traditional pay-TV service providers Comcast (CMCSA), Charter (CHTR), and AT&T (T) have their subscriber numbers decline since consumers are increasingly preferring less-expensive OTT (over-the-top) streaming service providers such as Netflix.
Charter said it lost 122,000 video subscribers in 1Q18, which was much higher than the loss of 40,000 subscribers that analysts were expecting.
AT&T’s satellite TV service DirecTV lost 188,000 customers in 1Q18, and its streaming service DirecTV Now added 312,000 subscribers, underscoring the cord-cutting trend. Comcast saw a fourth consecutive quarter of declining subscriber base, losing 96,000 subscribers in the quarter that ended in March.
While Netflix stock has surged an astonishing 62.4% in 2018, Charter and Comcast have seen their stocks plunge 24.5% and 22.5%, respectively, year-to-date.