The Biggest Threat to Television Streaming Services

Traditional pay-TV is certainly seeing a decline in subscribers as more video-streaming options crop up. While DISH and AT&T may be cannibalizing their businesses at a significantly lower revenue per user, if they didn’t do it, someone else would. Their hands were forced. Still, investors shouldn’t expect the same steady cash flow from Sling TV or DIRECTV Now subscribers. Those services aren’t just more susceptible to seasonality, they’re also more susceptible to competition since subscribers aren’t locked in for the long term. The same applies to the non-traditional TV companies once they get up to scale, so don’t get too comfortable with them, either. – Adam Levy, The Motley Fool

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