US pay-TV providers present first ever Q1 net losses | Pay-TV | News | Rapid TV News
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Yet more bad news for the US pay-TV arena as a Leichtman Research Group (LRG) study reveals that the largest pay-TV providers in the country lost about 410,000 net video subscribers in Q1 2017.

LRG 19may2017LRG calculates that the top pay-TV providers account for 93.3 million subscribers -- with the top six cable companies having over 48.6 million video subscribers, satellite TV services about 33.2 million subscribers, the top telephone companies 9.8 million subscribers, and the top Internet-delivered pay-TV services having about 1.7 million subscribers. Yet this shows a market in decline as the industry gained about 10,000 subscribers in Q1 2016.

Looking at where the losses came from, the top six cable companies lost about 115,000 video subscribers in 1Q 2017, compared with a gain of about 50,000 subscribers in 1Q 2016. Satellite TV services lost about 320,000 subscribers in 1Q 2017 - compared to a gain of about 175,000 subscribers in 1Q 2016. Key player DIRECTV had no net adds in 1Q 2017, compared with a gain of 328,000 in 1Q 2016. The top telephone providers lost about 325,000 video subscribers in 1Q 2017 - compared to a loss of 350,000 subscribers in 1Q 2016

By way of contrast, online video services Sling TV and DIRECTV NOW added about 350,000 subscribers in Q1 2017, which compares very well to the approximately 130,000 net adds a year earlier. The analyst concluded that traditional pay-TV services (not including Internet-delivered services) lost about 760,000 subscribers in 1Q 2017 -- compared to a loss of about 120,000 in 1Q 2016.

“The pay-TV market lost about 410,000 subscribers in the first quarter of 2017. This marked the first time that the industry has ever had net subscriber losses in the first quarter of a year,” said Leichtman Research Group president and principal analyst Bruce Leichtman. “The decline in subscribers should not be interpreted as solely driven by a sudden increase in consumers disconnecting services. The net losses are also a function of a decrease in new connects, partially due to some providers less aggressively pursuing lower value customers than in the past.”

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