U.S. viewers will spend more on streaming video than pay TV for the first time in 2024, according to new research from Strategy Analytics. The company is releasing its latest U.S. Subscription TV Forecast, which projects that consumer spending on traditional pay TV services fell by 8% to $90.7 billion in 2020. It expects that number to decline further to $74.5 billion in 2023. At the same time, spending on subscription streaming services (including VOD and virtual MVPDs) rose by 34% to $39.5 billion in 2020 and will reach $76.3 billion in 2024, surpassing traditional pay TV.
With media companies pivoting to streaming, analyst Michael Nathanson of MoffettNathanson is asking if streaming is really a better business than traditional pay TV. His conclusion: With Netflix the only mature streaming company to use as a model, domestic streaming isn’t all that much different in terms of profit margins from low-end basic cable and premium pay networks, said Nathanson in a report.
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.
ESPN and Fox Sports had to come together if the heavyweight showdown between Deontay Wilder and Tyson Fury at the MGM Grand hotel this Saturday was to happen. And it’s also true that both networks are blanketing the airwaves this week like never before in an effort to get people to dig into their pockets for the $79.99 it will cost to watch the fight at home.
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.
Univision Communications and Televisa today announced a distribution arrangement that would make a Univision-branded linear television channel available across the region in early 2020. The 24-hour pay TV channel will be initially distributed across 17 Latin American markets, excluding Brazil. The network will be operated by Televisa, which will also handle distribution and ad sales. […]
The growing interest in legal sports gambling could mean more potential TV viewers, according to a recent analysis of sports programming by Altman Vilandrie & Co. Some 92% of frequent gamblers (those who participate regularly in sports betting and/or fantasy sports) are pay TV subscribers.
Cord cutting accelerated to record speed in the second quarter, with the major U.S. pay TV operators reporting an all-time-worst loss of 1.53 million subscribers during the period.
Gains by OTT-TV providers in the fourth quarter of 2018 again were not enough to offset the huge losses being absorbed by traditional pay-TV providers. According to MoffettNathanson’s latest “Cord-Cutting Monitor” report, the US pay-TV industry lost 248,000 subscribers in 4Q — 985,000 losses among the traditional providers (cable, telco and satellite) against 737,000 sub gains by the virtual MVPD market.
Traditional pay TV providers have widened their net loss of subscribers by 30% in the third quarter of this year. MoffettNathanson Research says this year’s drop amounted to 1.12 million. “It is the largest quarterly loss ever (the first time the industry lost over 1 million subscribers in a quarter),” writes Craig Moffett, senior research analyst, MoffettNathanson.
In a survey from SpotX, a video advertising serving platform, commissioned by Kagan, 54% of respondents expected to see an 11% to 20% increase on advertising spend by moving to audience based buying/selling — 32% expected a a 6% to 10% gain.
Big traditional pay TV providers lost 3.7% or 3 million subscribers in 2017 — one of the worst years ever, according to one report. But other research says that new, rising virtual pay TV services have softened the blow.
U.S. cable, satellite and IPTV operators lost a combined 845,000 video subscribers in the fourth quarter of 2017, analyst Vijay Jayant estimated in a note to investors.
Over the past decade, prices for TV service have risen almost twice as fast as inflation, according to an analysis of government data. Data provider S&P Global Market Intelligence says customers’ cable and satellite TV bills have soared 53% since 2007, to $100.98 in 2017.
New data from MoffettNathanson shows traditional pay TV subscriber erosion worsened in the just-completed second quarter, rising from 2.5% in 1Q to 2.7%, “the fastest rate of decline on record.” The “Cord-Cutting Monitor” study goes on to note that the second quarter “is always the year’s worst quarter — and with so many new virtual […]
Cord-cutting and competition from new platforms are expected to lead to more than 1 million sub losses in a first for the industry.
Since internet-TV packages have begun to heat up in earnest, a question has hung in the air: Are they cannibals? Will these packages hurt their traditional counterparts, sometimes offered by the same company, by cannibalizing their customers. In short: Will people who have a $100-a-month DirecTV package right now trade it down for something smaller and digital? In a new report from UBS analysts led by John Hodulik, the answer seems to be “yes.”
Over-the-top “skinny bundles” are continuing to grow, and their subscribers are streaming plenty of content, but for now, they’re still a relatively small piece of the puzzle compared to traditional cable or satellite subscriptions as well as all over-the-top viewing (including people who subscribe to OTT services like Netflix while still having traditional cable).
Now that the first-quarter earnings season is in the rear view, it’s time to assess the damage. Here’s a complete look at the results, ranking the top seven cable, satellite and telco pay-TV operators and offering a look at their performance in a number of key metrics, including subscriber growth and average revenue per user.
The slow-motion crumbling of pay TV has suddenly started to look like a looming avalanche. The unprecedented surge in cord-cutting during the first three months of 2017 has heightened Wall Street fears that the industry’s enormously profitable big bundle of channels is coming apart at the seams — for real this time.
The rumbling under the ground of traditional television is growing louder according to the results of Deloitte’s latest annual Digital Democracy Survey, which polled 2,131 U.S. consumers in early November. The audit, consulting, tax and advisory firm found that 74% of U.S. households subscribe to pay TV and about two-thirds of these people say they keep it because it’s bundled with internet service.
Traditional pay TV distributors witnessed some of the steepest declines in fourth-quarter 2016 — but adding in new “virtual” pay TV providers trimmed those drops. For many, this means cord-cutting has arrived. MoffettNathanson Research says there was a 1.7% decline in traditional cable, satellite, and telco TV distributors — losing 319,000 to total 96.499 million U.S. subscribers.
Pay TV networks start the new year with discouraging news from Nielsen: The universe of homes that subscribe to cable or satellite for January is down 1.7% vs. the same time last year, even though the number of TV households grew 1.7% to 118.4 million, Nielsen estimates — and Pivotal Research Group’s Brian Wieser reports.
MoffettNathanson analyst Craig Moffett estimates cable, satellite and telco TV operators lost around 757,000 subs in the second quarter, or 708,000 if the gains by Dish Network IP-based platform Sling TV are factored in.
Pay TV providers could lose money on deals made with every single TV network group should growth rates from subscribers’ fees continue. Bernstein Research analysis, along with SNL Kagan research, says gross profit margins — which now average 25% for pay TV providers — are projected to fall to 17% in 2018. They will be zero in 2023 if trends continue.
Consumers are continuing to increase their use of TV Everywhere,” even if they aren’t identifying the practice of streaming video content as such.
TV Everywhere, the great hope of media companies to hold their ground against the rise of streaming services like Netflix, has not gone much of anywhere. A report out Friday from Adobe Digital shows that just 13.6% of households that subscribed to pay TV in the third quarter used TV Everywhere sites or apps, which let users view television channels on mobile and set-top streaming devices so long as they can enter login information that proves they are pay TV subscribers. That represents growth of merely 8% over the same quarter last year.
The march of the cord-cutters continues: 357,000 net U.S. pay TV subscribers were lost in the third quarter, and Dish TV alone lost 178,000 subs. Some small good news for pay TV: the number of lost subs abated somewhat from second quarter.
How did pay TV distributors including cable MSOs, IPTV operators and satellite providers, as well as relevant programmers, online video providers and technology companies, perform in 2015’s third quarter? Here’s an earnings summary for the biggest cable industry players.
Richard Plepler raps “myopic” distributors, including Comcast, for failing to use HBO Now to drive broadband value.
Millennials might be more inclined to subscribe to pay television services if their current (or potential) providers were to make a more concerted effort to demonstrate how the services can be used anywhere, on any device, according to research from strategy consulting firm Altman Vilandrie & Co.
How bad have things been for the pay TV industry lately? An estimated 300,000 Americans dropped TV service last quarter, and analysts are calling it good news. That’s about half as many as in the second quarter, which at more than 600,000 set an industry record.
People familiar with the matter say Amazon is exploring the creation of an online pay TV service to complement its existing video offerings and has reached out to major media companies including CBS and NBC about carrying their channels.
Creating an elegant interface that combines streaming services and pay TV services, so that Netflix and NBC both live on the same grid, would go a long way towards improving TV’s user experience. It would also benefit all parties, from networks and MVPDs to streaming services. But most of all, it would benefit the consumer.