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When Subscriber Losses Outpace Revenue Gains
The ecosystem is witnessing significant declines in video subscribers, resulting in negative subscription revenue, as subscriber losses are now outpacing increases in subscription rates. For years, companies could offset declining subscriber counts with higher rates and advertising growth. However, recent trends show that these strategies are faltering: the number of subscribers is decreasing faster than the rates can compensate, leading to substantial financial losses. As seen with particular companies, such as WBD, this downturn in subscription revenue signals a critical shift in the industry, compounded by failing advertising revenues.