US pay-TV sub losses slow but hit 415,000 in Q2

US pay-TV sub losses slow but hit 415,000 in Q2
Michelle Clancy
| 14 August 2018

The largest pay-TV providers in the US – representing about 95% of the market – lost about 415,000 net video subscribers in the second quarter, compared with a pro forma loss of about 660,000 subscribers one year ago.

comcast 14 august 2018
The top pay-TV providers now account for about 91.3 million subscribers, according to Leichtman Research Group, whose findings roughly dovetail with other analysis. The top six cable companies have 47.4 million video subscribers, satellite TV claims 30.6 million subscribers, the top telephone companies et 9.1 million subscribers, and the top internet-delivered pay-TV services count 4.2 million subscribers.

“This marked the fewest net losses in the traditionally weak second quarter since 2014,” said Bruce Leichtman, president and principal analyst for LRG. “The two publicly reporting Internet-delivered pay-TV services now have over 4 million subscribers. This newer segment of the industry has helped to mitigate overall pay-TV losses, while also contributing to a share shift from traditional services. This shift is both a product of consumers opting for more economical services, as well as changes in providers’ strategies.”

Breaking it out by segment, the cable sector (Comcast, Charter, Cox, Altice, MediaCOM and Cable One, in descending order) lost about 275,000 video subscribers in 2Q 2018 – compared to a loss about 190,000 subscribers in 2Q 2017.

Satellite TV services (Dish network and DIRECTV) lost about 480,000 subscribers, compared to a loss of about 470,000 subscribers a year ago – more losses than in any previous quarter, led by DIRECTV.

Telco losses slowed, however, and the segment (consisting of Verizon, AT&T and Frontier) saw the fewest subs (about 45,000 video subscribers) walk away for any quarter since 3Q 2015; a year ago, IPTV saw a loss of 270,000 subscribers. Also, AT&T U-verse reported net video additions for the first time since the first quarter of 2015.

In its research LRG also found that Internet-delivered services (Sling TV and DIRECTV NOW) meanwhile added about 385,000 subscribers in the quarter, compared to about 270,000 net adds last year.

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