Back in the 1990s and 2000s, it seemed like nearly every American had cable.
That wasn’t true. The cable television market peaked at just under 100 million homes in the late 2010s, while the census report showed roughly 129 million total households.
Still, for most Americans, for many years, a cable television subscription was table stakes. That was very good for a business where most channels got a few cents, sometimes more, from every subscriber.
That created a system where niche channels survived because people did not have the option to not pay for the Cooking Channel or the entire ESPN bundle. You kind of got what Comcast, Charter, or another cable company gave you, and your subscription supported channels you watched, and many you didn’t.
This period, especially before the internet became a successful home for retailers, was also a golden age for home shopping. Both QVC and HSN, now owned by the same company, but once rivals, commanded good spots on the cable dial, so to speak, allowing them a platform to sell to nearly 100 million American homes.
As cord-cutting has taken hold, the audience for QVC and HSN has fallen, leaving QVC Group Inc., the owner of both home shopping networks, on the verge of a Chapter 11 bankruptcy filing.
QVC and HSN face Chapter 11 bankruptcy
From its height of nearly 100 million households, the cable television universe has fallen to under 70 million subscribers, according to data from Cord Cutters News.
“What’s driving this mass defection? Cost is king. Cable bills ballooned from $96 monthly in 2019 to $147 by 2022, while streaming giants like Netflix ($15.49/month) and Disney+ ($13.99/month) offer on-demand riches for a fraction of the price,” wrote industry expert Luke Bouma.
It’s an exodus that has been devastating for home shopping channels. Where QVC and HSN used to have tens of millions of people simply flip by their channels, giving both a chance to captivate them with their wares, about a third of that audience has cut the cord.
In addition, the rise of the internet has given shoppers many more options. That has put QVC Group, on the brink of bankruptcy, according to a report from Bloomberg.
“QVC Group Inc. is negotiating a voluntary debt restructuring agreement with its creditors that could be implemented as part of a Chapter 11 bankruptcy process, as the television shopping network grapples with viewer declines and a heavy debt burden,” the news organization reported.
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QVC Group is losing money
QVC Group CEO David Rawlinson tried to put a positive spin on the company’s struggles in its third-quarter earnings report.
“We are early in our WIN growth plan, but continue to make progress. We reduced the year-over-year rate of revenue decline in our QxH segment despite the decline in linear television viewership, driven by revenue growth in our social and streaming platforms.” Rawlinson said. “Although we are encouraged by the progress we are making, deleveraging from our total revenue decline, tariffs, and other critical investments, pressured our adjusted OIBDA.”
The company has seen drops in revenue.
- QVC Group revenue decreased 6% in US Dollars and 6% in constant currency
- Generated operating income of $60 million.
- Operating income decreased 61% in US Dollars and decreased 62% in constant currency.
- Adjusted OIBDA decreased 32% in US Dollars and decreased 34% in constant currency.
“Though declining linear TV viewership has put pressure on our business, we are executing well on the second phase of our transformation as we continue to manage costs, address our capital structure, and invest in social and streaming,” Rawlings said during his company’s Q3 earnings call.
Those results have left the company on the brink of a Chapter 11 filing.
“The company and its lenders have held confidential talks aimed at resolving a complex balance sheet and burdensome debt load, according to people familiar with the matter. Terms haven’t been set and no final decision has been made about filing for bankruptcy, the people said, asking not to be identified discussing private information,” shared Bloomberg.
Cord cutting has taken hold
- Cable TV subscribers in the U.S. have declined sharply since 2017, falling from about 96.3 million to 68.7 million by 2024, a drop of over 27.6 million subscribers (almost 29%).
- Year-by-year losses show consistent declines, with cable households dropping each year from 2017 through 2024; in 2024 alone cable companies lost over 5 million subscribers.
- Cord-cutting dynamics are accelerating, with the total number of U.S. cord-cutting households projected to reach 77.2 million in 2025, up from 37.3 million in 2018.
- Traditional pay-TV penetration has plunged from about 88% of U.S. households in 2010 to an expected 42% by 2026, reflecting how cord cutting has reshaped viewing habits.
- Major cable providers lost millions of video subscribers in 2023, with top pay-TV operators shedding roughly 3.8 million video subscribers and Comcast alone losing over 2 million video customers that year.
- The trend isn’t just TV. Cord cutting 2.0 saw over 1 million Americans cancel their cable TV-provided internet subscriptions in 2024, signaling a deeper shift away from traditional cable bundles.
Sources: Cord Cutters News, Pew Research
Daniel Kline has covered the cable industry and cord-cutting for over 30 years.
