Cord cutting is expected to grow in 2021 and 2022, offset somewhat by growth of virtual multichannel video programming distributors, according to a new report from S&P Global. S&P said legacy MVPDs — cable, satellite and telco — will lose 8.2% of their subscribers in 2020 after losing 7.9% in 2019. In 2022, another 10.3% of subscribers are expected to cut the cord.
The latest round of lucrative NFL rights renewals with programmers will likely lead to a rise in cord cutting for both MVPDs and virtual MVPDs. Deana Myers, research director at Kagan, broke down the new agreements with ABC, Amazon, ESPN, CBS, Fox and NBC, which her firm estimates are worth more than $107 billion all told. She said that programming costs are sure to rise from this, in terms of both affiliate and retransmission fees.
Traditional U.S. pay-TV subscriptions dropped by nearly 7.2 million in 2020 according to the latest figures from S&P Global Market Intelligence’s Kagan unit. The Kagan figures further document that it was a tough year for pay-TV companies as viewers shifted to streaming amid the COVID-19 pandemic.
Comcast, AT&T, Charter and Dish collectively lost nearly 5.1 million customers last year vs. 2.6 million in 2019.
The pandemic has taken a huge toll on the pay TV industry, and with the near-term future of live sports in question, there are no signs of it getting better in 2021. The fraught pay TV landscape is forcing some smaller, niche cable channels out of business altogether.
Cord-cutting will pick up speed in 2021, sending cable TV subscriptions into virtual free fall, with a whopping 27% of U.S. households saying they’ll cancel their pay TV package by year’s end, a new survey by The Trade Desk predicts.
The share of U.S. wireline broadband homes no longer subscribing to a linear pay TV service reached 37% in the second quarter, according to Kagan, a group within S&P Global Market Intelligence. In the first quarter of 2014, Kagan found that only 12.5% of broadband homes didn’t take a pay TV service.
Advertising and cable subscriptions have been the twin engines driving the growth of media companies for decades. Now both are faltering, and there can be only one conclusion: the traditional TV business will never recover.
Networks owned by Discovery were among those that non-subscribers to cable and cord cutters were most interested in seeing, according to a new survey by Beta Research.
Traditional pay TV subscriptions fell by a record-setting 1.8 million in the first quarter, according to an analysis by Craig Moffett of MoffettNathanson Research. The 7.6% decline includes a 14.3% plunge for satellite, compared to a 4% drop for cable.
The U.S. satellite and cable TV business declined at an unprecedented rate last year — with traditional pay TV providers dropping a staggering 6 million customers, a 7% year-over-year decline. In the fourth quarter of 2019 alone, traditional TV distributors lost around 1.5 million subs, dropping to about 83 million total at year-end, according to estimates from Wall Street analyst firm MoffettNathanson.
Cord-cutting isn’t stopping. As it turns out, that’s not such bad news for cable giants like Comcast Corp. It is, however, for AT&T Inc.
Forty percent of today’s pay TV universe is at risk, according to an analysis by MoffettNathanson based on its work with Altman Vilandrie & Co. In a research note, the firm said it thinks regular sports and news viewers represent about 85% of the current pay TV sub base, yet it believes sports viewers are the most entrenched pay TV subs.
The U.S. pay TV business lost more than 1.5 million subscribers in the second quarter, hitting a loss rate of 5.4%. Given the obvious fault lines, the trend isn’t surprising, or even interesting, said MoffettNathanson analyst Craig Moffett. Certainly, cord cutting isn’t going to go away, but the loss rate should decelerate in the third quarter, the analyst predicts.
Looking at the second-quarter financial and operating results released so far by cable operators, analyst Michael Nathanson of MoffettNathanson Research said cord-cutting has become “freaking ugly” and the headwinds faced by media companies have gotten “much worse.”
The company, which is engaged in retrans war with broadcasters, posted a net loss of 778,000 “premium video” subscribers, most of whom subscribe to DirecTV, and shed 168,000 streaming DirecTV Now accounts. Chief Executive Randall Stephenson earlier this year told investors the company expects to keep losing pay-TV customers through 2019 as it cut backs on promotions.
The influx of new video streaming services and the escalating war for contentamong them is beginning to make cord-cutting a less appealing option for your wallet than it once was, but you can’t reverse the natural progression of technology. Streaming is now the dominant entertainment medium for everything but live sports, and cable TV providers continue to lose millions of subscribers each year.
The dream of cutting the cord on pricey cable TV services went something like this: Consumers could get what they wanted, when they wanted, while saving money because they wouldn’t be paying for expensive bundles of channels they never watched. Snip, save, enjoy. But this entertainment nirvana never actually arrived.
Cord-cutting has been a massive thorn in the side of pay-TV distributors and television media companies for nearly a decade. After U.S. pay TV subscribers peaked in 2010 at 105 million households, about 14 million homes have cut the cord, according to a report from Digital TV Research. But 2018 might’ve been the pay TV industry’s worst year for cord-cutting. The U.S. will lose fewer pay TV subscribers this year than last, according to Digital TV Research.
Things got serious for pay TV providers in 2018 as the number of subscribers who decided to cut the cord nearly doubled, according to the Leichtman Research Group. The firm’s findings show that the largest pay TV providers in the U.S. — representing about 95% of the market — lost about 2,875,000 net video subscribers in 2018, compared to a pro forma loss of about 1,510,000 subscribers in 2017.
Middle-age Americans spend the most time consuming video, online content and other media, but younger adults are more likely to be digitally-focused using internet-connected TV devices, apps and the web, a new Nielsen survey finds.
There’s no denying that cord cutting has put a massive dent in U.S. pay TV subscriber totals over the past few years, but new research suggests many of those that haven’t cut don’t plan to. Research firm GfK MRI found that 71% of all U.S. consumers say they have cable, satellite, or telco TV service and have no plans to drop it. This includes the majority of the 18-34 age group (58%), as well as 69% of people 35-49, and 80% of those 50 and over. Of these respondents, 97% said they have no plans to cut the cord.
If you are one of the millions of Americans who has cut the cord from cable or other traditional pay TV providers in exchange for streaming services such as Netflix, you are about to find yourself with a lot more company. That’s the forecast from a study about cord cutting and the streaming TV market, released last week by the research firm eMarketer. According to its research, 33 million Americans will cut the cord this year, as the use of so-called over the top (OTT) streaming services continues to eat away at the position of pay TV providers.
Pay TV pricing is the biggest factor in the consumer decision to cut the cord, and it continues to increase in relevance, according to TiVo’s latest quarterly “Online Video and Pay-TV Trends Report.” According to the technology company’s research division, 86.7% of pay TV refugees listed price as their top reason for cutting the cord, a 6.6% uptick over TiVo’s 4Q 2016 report.
Cord-cutting is not just for millennials anymore. Fed up with high prices and bloated packages, millions of Americans cut the cord on cable TV in 2017, finding refuge with a growing number of streaming services, which deliver lower prices and a competitive channel lineup over the internet.
Television has changed remarkably over the past few years. It might be time for your viewing habits to change as well. Unless you enjoy paying more than $100 a month for a cable or satellite subscription you only half-use, you’re likely considering joining the growing ranks of consumers who have “cut the cord” and are now getting their favorite TV shows, movies and even live sports through the internet and streaming services. Making this change requires some preparation, though. Here’s a step-by-step guide to the cord-cutting process.
Research company Kagan said today that linear pay TV services in the U.S. lost 1.2 million customers in the third quarter, a tally that blows the doors off of previous industry estimates and seems to come on the weary backs of smaller cable companies.
On its earnings call, CEO Les Moonves is bullish on viewer choice and new subscription models, explaining that CBS makes more money per sub when the cord is cut. “Not only are we not affected as others are by cord-cutting, it has real measurable upside for us. This is what sets CBS apart from the pack.”
With five out of the top seven publicly traded linear pay TV platforms, including the top three, reporting customer numbers, it appears the industry’s record-bad third-quarter subscriber losses could indeed surpass 1 million users, as some analysts have predicted.
AT&T, the parent company of DirecTV, will report losing 90,000 video customers when it discloses quarterly financial results this month due in part to cord-cutting, the telecommunications company said Wednesday in a regulatory filing. AT&T, which is still awaiting final approval on its $85 billion merger with Time Warner, said it will lose 390,000 traditional video subscribers but gain 300,000 to its over-the-top digital service.
An Adobe Digital Insights survey of 1,500 U.S. consumers found that more than a quarter under age 35 prefer to watch TV exclusively by streaming online. Thirty percent expect to switch to streaming services in the next two years.
American consumers are cancelling traditional pay-TV service at a much faster rate than previously expected, according to research firm eMarketer. In 2017, a total of 22.2 million U.S. adults will have cut the cord on cable, satellite or telco TV service to date — up 33% from 16.7 million in 2016 — the researcher now predicts. That’s significantly higher than eMarketer’s prior estimate of 15.4 million cord-cutters as of the end of this year. Meanwhile, the number of “cord-nevers” (consumers who have never subscribed to pay TV) will rise 5.8% this year, to 34.4 million.
It’s bad, but not 1.3 million bad. With the operators behind six of the top eight pay-TV platforms reporting second-quarter earnings this week, it appears cord cutting during the period will not match the dire forecasts of some media and telecom investment analysts. So far, with Comcast, AT&T, Charter Communications, Verizon and Altice USA reporting second-quarter earnings, the linear pay-TV sector has reported losses of 527,000 users.
New data suggests that cord cutting may be getting worse this quarter, an alarming development given the unprecedented video sub losses that hit pay-TV providers during 1Q 2017. While observers will have to wait for the next round of financial disclosures for certainty, research firm M Science says cord-cutting indications “do not appear to have improved from 1Q through the end of May” for either Comcast or Charter, two of the three largest MSOs in the U.S.
Cord-cutters are ditching their cable packages at the fastest rate ever, opting instead for cheaper, bundled digital TV options, according to the latest Magid Broadcast Study. The trend reflects consumers’ preferences to ditch bundled cable packages for more affordable, niche bundled services that can be accessed on TV box tops or on mobile. Cord cutting is being matched by a rise in streaming, also at a rate faster than ever.
In a new commercial, Dish Network warns consumers about so-called “cord-cutting” with an announcer saying: “Stick with Dish and don’t miss out” on local news, weather or live sports.
Media stocks took a beating Wednesday as concerns about sluggish ad sales and cord-cutting left investors in sell mode. Shares of 21st Century Fox were down 5.01% at the end of trading at $28.35, Discovery Communications fell 4.22% to $26.78, CBS Corp. dipped 3.35% to $63.46, Disney slid 2.40% to $111.62, and Comcast dropped 2.03% to $38.54.