Cord-Cutting Increased In Q1

Pay-TV cord-cutting accelerated for the first time in the first quarter of 2015, according to a report in USA Today.

The report cited data from research firm Moffett-Nathanson, which indicated the industry lost 31,000 subscribers in the first three months of the year.

While the losses may not seem significant, according to Moffett-Nathanson, the first-quarter of the year is "a seasonally good one for Pay TV” and the Q1 “results aren't pretty.”

Evercore ISI estimated the losses to be even greater with 40,000 subscribers cutting the cord. The firm expected that cable lost 105,000, satellite lost 74,000, while telco TV providers added 143,000 subscribers.

Moffett-Nathanson also estimated that cable companies were the big losers with a combined 86,000 lost subscribers.

AT&T Inc. (NYSE: T) and Verizon Communications Inc. (NYSE: VZ) added about 50,000 and 90,000, respectively, and were differentiated from traditional cable as they deliver pay television services over fiberoptic networks.

DISH Network Corp (NASDAQ: DISH) lost 134,000 subscribers, the most of any of the companies, largely due to programming disputes, according to the report, while DIRECTV (NASDAQ: DTV) added 60,000 subscribers.

The Moffett-Nathanson report claimed the trend “is only going to get worse” although it was “too soon to panic,” it was “ not too soon to be genuinely worried."

Investors may also want to follow Netflix, Inc. (NASDAQ: NFLX) as a potential beneficiary of the cord-cutting trend.

Netflix recently traded at $582.58, down 1.25 percent.

DISH Network recently traded at $65.81, down 0.86 percent.