Graham Holdings reported another 14,076 video subscribers were lost in the third quarter for its MSO subsidiary Cable One.
Phoenix, Ariz.-based Cable One now has 476,233 remaining TV customers, a 15.1 percent year-over-year decline, with most of the losses coming after the company decided not to renew its 15-channel bundle with Viacom in April. The absence of Viacom has no doubt accelerated, to some degree, Cable One's video customer losses--the company only lost 7 percent of its video customer base from Q2 2012 to Q3 2013.
However, with operating profit increasing 1 percent to $40.1 million for the MSO in the third quarter of this year, Cable One executives don't seem to be experiencing any regrets.
"Due to rapidly rising programming costs and shrinking margins, video sales now have less value and emphasis (subscribers down 15% over the third quarter of last year) and programming costs have been reduced significantly," the company's earnings release, put out Monday, reads.
Cable One revenue declined 3 percent in Q3 to $195.7 million, and operating expenses dropped 4 percent to $155.6 million.
For more:
- read this Graham Holdings earnings release
- read this Deadline Hollywood story
Related links:
Doing the math on Suddenlink's decision to kick out Viacom: A good call by the cable company
Suddenlink inks deals with CBS, Diddy's Revolt, but not update on pending Viacom blackout
Suddenlink threatens blackout of Viacom channels
Cable One preps replacements for Viacom channels