US pay-TV losses slow down in Q3 | Media Analysis | Business
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It may be very premature to say that the phenomenon has hit a peak but a study from the Leichtman Research Group (LRG) has provided some welcome good news for the US pay-TV market with the flow of subs losses stemmed substantially in the third quarter of the year.
fuboTV Platform 24March 2020
The study found that the largest pay-TV providers in the US, representing about 95% of the market, lost about 120,000 net video subscribers in Q3 20, compared with a pro forma net loss of about 945,000 at the same time a year ago. These leading providers now account for about 82.6 million subscribers with the top seven cable companies having 44.3 million video subscribers; satellite TV services having about 22.6 million subscribers; the top telcos having 8.0 million subscribers; and the top publicly reporting Internet-delivered (vMVPD) pay-TV services having 7.7 million subscribers.

Assessing the deeper In the quarter, LRG saw continued falls in the cable, telco and satellite sectors but with pay-TV overall having fewer net losses than in any quarter since the first quarter of 2018. In addition, the return of live sports in Q3 20 saw Internet-delivered vMVPDs deliver more net additions than in any previous quarter.

Satellite TV services lost about 775,000 subscribers in Q3 2020, this compared with a loss of about 1,140,000 subscribers in Q3 2019. The top seven cable companies lost about 375,000 video subscribers in Q3 2020, down on 410,000 subs loss in Q3 2019 while the equivalent video subscribers at top telephone providers were down 5,000 in Q3 2020. This compared with a loss of about 210,000 subscribers in Q3 2019.

By contrast, the top publicly reporting Internet-delivered (vMVPD) services – namely Hulu + Live TV, Sling TV, AT&T TV NOW, and fuboTV - added 1,035,000 subscribers in Q3 2020 – compared to about 815,000 net adds in Q3 2019.

“It is more important than ever before to recognise vMVPDs as a key segment of the live pay-TV industry,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group commenting on the study. “Hulu + Live TV is now the fifth largest pay-TV service in the US and YouTube TV (not part of LRG’s tracking data because it does not formally report quarterly results) now has over three million subscribers, including one million net additions thus far in 2020.”