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By Brad Tuttle
August 31, 2016
BackyardProduction—Getty Images/iStockphoto

The cord-cutting trend isn’t going away. In fact, the pace at which subscribers are dumping their pay TV packages is increasing.

During the second quarter of 2016, roughly 812,000 U.S. customers canceled their pay TV subscriptions, according to an estimate from SNL Kagan. “It is a bit of an acceleration and the biggest quarterly loss that we’ve seen,” said Ian Olgeirson, an analyst with SNL Kagan, per the Los Angeles Times. “We are seeing a gradual increase in the decline rate.”

Overall, there were 1.4 million fewer cable subscribers last quarter compared to the same period a year ago. Meanwhile, the total number of pay TV subscribers in America dropped by 1.1 million in 2015, which is four times the decline seen in 2014.

There is no need to feel bad for telecom companies, though. The big reason that traditional cable and satellite subscriptions are down is that people are increasingly turning to online video services like Netflix, Amazon Prime, Hulu, and Sling TV, and even if people are canceling their pay TV from Comcast, Verizon Fios, or Time Warner Cable, they are probably still paying for broadband Internet services from these same providers.

The truth is that many people aren’t really “cutting the cord” completely. They’re still plugged into business with big pay TV-Internet providers, but are only paying for broadband rather than the old “triple play” combo with landline, cable, and Internet bundled in one monthly bill. And instead of paying a monthly cable TV bill, they’re more likely to be paying a (likely smaller) monthly bill to one or more streaming video services.

Read Next: How to Watch All the TV You Want Without Paying a Cable Bill

What’s more, a recently released forecast from SNL Kagan indicates that over the next 10 years the cable industry will be faring quite well. Traditional TV subscriptions are expected to continue on a decline, falling 1.5% per year over the next decade, lower than previous anticipated declines of 1.7%. But more importantly, broadband subscriptions are being projected to increase by 8 million over the next decade, reaching 71 million by 2026—which would be 1.6 times the number of video subscribers if SNL Kagan’s forecasts hold up.

“Like many industries, cable isn’t immune to shifting preferences, but continued growth in broadband may propel revenue growth on both the residential and commercial end,” SNL Kagan researchers Tony Lenoir and Ian Olgeirson explained earlier this month. “Despite ongoing declines in video, the next 10 years look pretty good for this sector.”

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The purpose of this disclosure is to explain how we make money without charging you for our content.

Our mission is to help people at any stage of life make smart financial decisions through research, reporting, reviews, recommendations, and tools.

Earning your trust is essential to our success, and we believe transparency is critical to creating that trust. To that end, you should know that many or all of the companies featured here are partners who advertise with us.

Our content is free because our partners pay us a referral fee if you click on links or call any of the phone numbers on our site. If you choose to interact with the content on our site, we will likely receive compensation. If you don't, we will not be compensated. Ultimately the choice is yours.

Opinions are our own and our editors and staff writers are instructed to maintain editorial integrity, but compensation along with in-depth research will determine where, how, and in what order they appear on the page.

To find out more about our editorial process and how we make money, click here.

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