DURHAM, N.H.—While streaming video services like Netflix have worked to rein in password sharing, a new study from Leichtman Research Group (LRG) reveals nearly one-quarter of all the direct-to-consumer VOD streaming services measured are being shared by more than one household.

“Password sharing continues to be prevalent throughout the streaming video industry, despite recent efforts to limit it. This study found that 10% of all DTC services are borrowed from someone else, down from 12% in 2022,” said Bruce Leichtman, president and principal analyst for LRG. “Overall, 20% of households have at least one DTC service that is paid for by another household.”

Published in LRG’s new “Internet-Delivered TV Services 2024” study, its seventh annual, the research focuses on vMVPDs (virtual Multichannel Video Programming Distributors) and other DTC streaming video services.

On the plus side for service providers, of the households that subscribe to the 15 top DTC video-on-demand services LRG measured, 53% have signed up for four or more services. Nearly three out of four of them fully pay for those services and do not share them with those outside their households, the research found.

The study reveals that among the 23% of all DTC services used by more than one household: 11% are used and paid for by those who also share the with someone outside their home; 10% are used in one household but borrowed from another household paying for the service; and 2% are used by multiple households that share costs, it found. 

The research also found 4% of DTC services are not paid for because they are bundled with another service.

Subscription borrowing was more prevalent among younger respondents. A total of 17% of all DTC services are borrowed by those ages 18 to 34, compared to 7% among those 35 and older. The younger cohort accounts for 59% of all DTC services borrowed by an adult, according to the findings.

The efforts of Netflix to combat service borrowing appear to be paying off as just 10% using the service borrow it from someone else—down for 15% in 2022, it found.

Other findings of the research include:

• Among adults ages 18-44, the mean number of DTC services is 5.1, compared to four among ages 45-54, and 2.8 among those 55 and older.
• 6% of all households in the past year had Netflix, but currently do not—the is true for Hulu and the live pay-TV category.
• Adults 18-to-44-year-old adults account for 57% of all those with a vMVPD pay-TV service.
• 72% of vMVPD subscribers are very satisfied with their service, which is down from 79% in 2022.
• 22% of all vMVPD services are shared by multiple households, including 8% of all vMVPD services that are fully paid for by someone outside the household.

The findings are based on an online survey of 2,546 U.S. adults 18 years of age and older. It was conducted in February, and the online sample has a statistical margin of error of +/- 1.9%. 

More information is available on the company’s website. 

DURHAM, N.H.—Major pay TV providers have passed another unpleasant milestone in 2023 with a new Leichtman Research Group, Inc. (LRG) report finding that the largest pay-TV providers in the U.S. lost about 5,035,000 net video subscribers in 2023, compared to a pro forma net loss of about 4,590,000 in 2022.

“The top pay-TV providers had a net loss of about 5 million subscribers in 2023, compared to a pro forma loss of about 4.6 million subscribers in 2022,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “At the end of 2023, top pay-TV providers had about 71.3 million subscribers, down from 91.5 million at the end of 2018.”

The major pay TV providers covered by the report represent about 96% of the market. The record breaking 2023 sub losses mean that the top seven cable companies had about 34.1 million video subscribers, other traditional pay-TV services had about 21 million subscribers, and the top Internet-delivered (vMVPD) pay-TV services (including estimates for YouTube TV) served about 16.2 million subscribers.

Comcast suffered the largest pay TV sub losses, ending 2023 down 2,036,000 video subs to 14,106,000, followed DirecTV (11,300,000, down 1,800,000), Charter (14,122,000 subs, down 1,025,000),  and Dish TV (6,471,000, down 945,000).

Key findings for the year include:

• Top cable providers had a net loss of about 3,825,000 video subscribers in 2023 – compared to a loss of about 3,540,000 subscribers in 2022.
• Other traditional pay-TV services had a net loss of about 3,105,000 subscribers in 2023 – compared to a loss of about 2,720,000 subscribers in 2022.
• Top vMVPDs added about 1,895,000 subscribers in 2023 – compared to a gain of about 1,670,000 subscribers in 2022.
• Traditional pay-TV services (not including vMVPD) had a net loss of about 6,930,000 subscribers in 2023 – compared to a net loss of about 6,260,000 in 2022.

DURHAM, N.H.—Leichtman Research Group is reporting that the largest cable and wireline phone providers and fixed wireless services in the U.S. – representing about 96% of the market – acquired about 3,520,000 net additional broadband Internet subscribers in 2023, similar to a pro forma gain of 3,530,000 subscribers in 2022.  

But, all of those gains could all be traced to the expansion of fixed wireless/5G services, with fixed wireless/5G home Internet services from T-Mobile and Verizon adding about 3,665,000 subscribers in 2023 – compared to about 3,185,000 net adds in 2022. In contrast, cable operators lost about 65,000 subscribers in 2023 – compared to about 530,000 net adds in 2022. 

The top wireline phone companies lost about 80,000 total broadband subscribers in 2023 – compared to about 180,000 net losses in 2022, LRG reported. 

Overall the top broadband providers account for about 114.7 million subscribers, with top cable companies having 76.1 million broadband subscribers, top wireline phone companies having over 30.7 million subscribers, and top fixed wireless services having over 7.8 million subscribers, LRG reported. 

“Top broadband providers added about 3.5 million subscribers in 2023, similar to the number of broadband adds in 2022,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “Over the past four years, top providers added about 15.9 million broadband subscribers, compared to about 10.2 million net broadband adds in the prior four (pre-pandemic) years.”

LRG also reported that wireline telcos had about 1.97 million net adds via fiber in 2023, offset by about 2.05 million non-fiber net losses and that fixed wireless services accounted for 104% of the total net broadband additions in 2023, compared to 90% of the net adds in 2022, and 20% of the net adds in 2021.

Comcast remained the largest broadband provider with 32,253,000, down 66,000 subs, followed by Charter (30,588,000, up 155,000), AT&T (15,288,000, down 98,000) and Verizon (7,650,000, up 166,000). 

Among fixed wireless services, T-Mobile led with 4,776,000, up 2,130,000, followed by Verizon (3,067,000, up 1,536,000).  and Altice (4,517,900, down 114,100). 

DURHAM, N.H.—U.S. pay TV providers continued to hemorrhage subscribers in Q3 2023 according to new data from the Leichtman Research Group, Inc. (LRG) showing that the largest pay TV providers in the U.S. – representing about 96% of the market – lost about 465,000 net video subscribers in Q3 2023, compared to a pro forma net loss of about 385,000 in Q3 2022. 

The results, however, weren’t as bad as the previous quarter, when LRG reported that the largest pay TV providers in the U.S. lost about 1,730,000 net video subscribers in Q2 2023, compared to a pro forma net loss of about 1,725,000 in Q2 2022.

Q3 also produced generally positive results for vMVPDs like Fubo TV and Sling. vMVPDs added 1.3M subs while traditional pay TV providers lost 1.8M subs in the quarter. 

“Similar to recent years, pay TV net losses in the third quarter were more modest than in the first two quarters of the year due to the strength of sports on Internet-delivered vMVPD services,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “While traditional pay TV services had a net loss of about 1.8 million subscribers in Q3 2023, vMVPDs had over 1.3 million net additions in the quarter.”

The top pay TV providers account for about 71.5 million subscribers – with the top seven cable companies having about 34.9 million video subscribers, other traditional pay TV services having 21.9 million subscribers, and the top Internet-delivered (vMVPD) pay TV services having 14.7 million subscribers.

Other key findings from LRG include: 

• Top cable providers had a net loss of about 1,015,000 video subscribers in 3Q 2023 – compared to a loss of about 985,000 subscribers in Q3 2022
• Other traditional pay TV services had a net loss of about 780,000 subscribers in 3Q 2023 – compared to a loss of about 700,000 subscribers in Q3 2022
• Top vMVPDs added about 1,325,000 subscribers in Q3 2023 – compared to a gain of about 1,300,000 subscribers in Q3 2022

The rate of cord cutting has increased over the past five years according to a new report from Leichtman Research Group, which found that only 64% of TV households nationwide now have some form of pay-TV service. The percentage of TV households that have a live pay-TV service (via cable, satellite, Telco, or internet-delivered vMVPD) is down from 78% in 2018, 86% in 2013, and 87% in 2008.

It’s not just younger viewers that reflect the downturn though. In TV households with viewers 45 years and older, that percentage has fallen to 70%, compared to 88% in 2013. For younger households, adults ages 18-44, only 56% have a pay-TV service compared to 83% a decade ago. 

These findings are based on a survey of 1,769 households from throughout the United States, and are part of a new LRG study, Pay-TV in the U.S. 2023.  This is LRG’s twenty-first annual study on this topic.

Other related findings include:

• 48% of those that moved in the past year do not currently have a pay-TV service – a higher level than in any previous year
• 42% of renters do not have a pay-TV service – compared to 33% of homeowners
• 33% of non-subscribers last had a pay-TV service within the past three years, 37% last had a pay-TV service over three years ago, and 30% never had a pay-TV service
• Among those that never had a pay-TV service, 63% are ages 18-34, compared to 24% of former pay-TV subscribers
• The mean age of traditional pay-TV subscribers is 49.3 – compared to 42.5 among non-subscribers, and 40.8 with vMVPD-only
• Among all pay-TV subscribers, the mean reported spending per month is $112.70 – 5% higher than the mean monthly spending in 2018

“The percent of U.S. TV households with a live pay-TV service waned over the past decade, with a more precipitous decline over the past five years,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “The penetration of pay-TV remains lowest among younger adults and the categories that they tend to populate, including movers and renters.  Today, 56% of ages 18-44 have a pay-TV service, compared to 83% a decade ago.”

DURHAM, NH—The internet’s takeover of the American TV set is nearly complete as research shows that almost nine out of ten U.S. households now own at least one connected TV set. and nearly half of adults watch video via a connected device daily. 

New consumer research from Leichtman Research Group, Inc. (LRG) finds that 88% of U.S. TV households have at least one Internet-connected TV device, including connected Smart TVs, stand-alone streaming devices (like Roku, Amazon Fire TV sticks or boxes, Chromecast, or Apple TV), connected video game systems, and/or connected Blu-ray players. This compares to 82% with at least one connected TV device in 2021, 74% in 2018, and 44% in 2013. 

Overall, 49% of adults in U.S. TV households watch video on a TV via a connected device daily—compared to 39% in 2021, 29% in 2018, and 6% in 2013.  Younger individuals are most likely to use connected TV devices.  Among all ages 18-34, 63% watch video on a TV via a connected device daily—compared to 58% of ages 35-54, and 27% of ages 55+.

These findings are based on a survey of 1,770 TV households in the U.S., and are part of a new LRG study, Connected TVs 2023.  This is LRG’s twentieth annual study on TVs in the U.S.

Other findings include:

• 74% of TV households have at least one connected Smart TV – up from 64% in 2021, 47% in 2018, and 13% in 2013
• 55% of all TV sets in U.S. households are connected Smart TVs – an increase from 43% in 2021, 29% in 2018, and 7% in 2014
• 44% of TV households only have Smart TVs for all their TV sets
• 62% of TV households have at least one stand-alone streaming device – up from 55% in 2021, 46% in 2018, and 6% in 2013
• 67% of TV households have multiple types of connected TV devices – compared to 62% in 2021, and 49% in 2018
• The mean age of those with multiple types of connected TV devices is 42.3, while the mean age of those with one type of device is 50.5, and the mean age of those with no connected TV devices is 55.5

“Nearly half of all adults now watch video via a connected TV device daily, a significant increase from 29% five years ago, and 6% a decade ago,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “While Smart TVs are a key component of the connected TV category, the vast majority of connected TV users stream via multiple types of devices."

DURHAM, NH—Cord-cutting hit an all time high in the first quarter of 2023, with the largest pay TV providers in the U.S.—representing about 96% of the market—losing about 2,215,000 net video subscribers, compared to a pro forma net loss of about 1,850,000 in the same period a year ago, a decline of more than 16%, according to Leichtman Research Group.

But the loss wasn’t restricted to just traditional pay-TV; virtual multichannel program distributors such as Hulu Plus Live TV and Sling TV also lost subscribers as well. As a whole, vMVPDs lost 394,000 subscribers in Q1; the only service to gain subscribers was YouTube TV, which added approximately 100,000 during a quarter when it announced an $8 rate increase that went into effect in April.  

The top pay-TV providers account for about 73.7 million subscribers—with the top seven cable companies having about 36.8 million video subscribers, other traditional pay-TV services having 23.4 million subscribers, and the top Internet-delivered (vMVPD) pay-TV services (now including an estimate for YouTube TV) having about 13.5 million subscribers.

Key findings for the quarter include:

• Top cable providers had a net loss of about 1,060,000 video subscribers in 1Q 2023 – compared to a loss of about 825,000 subscribers in 1Q 2022;
• Other traditional pay-TV services had a net loss of about 760,000 subscribers in 1Q 2023 – compared to a loss of about 625,000 subscribers in 1Q 2022, and
• Top vMVPDs had a net loss of about 395,000 subscribers in 1Q 2023 – compared to a loss of about 400,000 subscribers in 1Q 2022

“Pay-TV net losses of about 2.2 million in 1Q 2023 were more than in any previous quarter,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “Similar to recent quarters, the record net losses appear to be as much a function of a slowdown in new connects as an increase in disconnects.”

The numbers match a similar report from MoffetNathanson released last week that noted total pay-TV penetration of U.S. households (including vMVPDs) has dropped to 58.5%, its lowest in 31 years.

The report comes a day after LRG reported that broadband providers added about 960,000 subscribers in Q1, however that comes as little comfort to the pay-TV providers whose broadband business is taking up the slack from the loss of video customers. Most of the additional broadband subscribers during the quarter were for the fast-growing fixed wireless 5G market dominated by T-Mobile.

DURHAM, N.H.—The Leichtman Research Group, Inc. (LRG) is reporting that the largest cable and wireline phone providers and fixed wireless services in the U.S. – representing about 96% of the market – acquired about 960,000 net additional broadband Internet subscribers in 1Q 2023, compared to a pro forma gain of about 1,085,000 subscribers in 1Q 2022.  

But most of the growth came from 5G carriers offering fixed wireless services, with T-Mobile alone adding 523,000 subs. They added about 915,000 subs in Q1, 2023. 

“Top broadband providers added nearly one million subscribers in 1Q 2023, with fixed wireless services accounting for 95% of the quarterly net adds,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “Over the past year, fixed wireless services have accounted for 105% of the approximately 3,400,000 net broadband additions.”

These top broadband providers now account for over 112 million subscribers, with top cable companies having about 76.2 million broadband subscribers, top wireline phone companies having about 30.8 million subscribers, and top fixed wireless services having about 5 million subscribers.

Key findings from the LRG report include: 

• Overall, broadband additions in 1Q 2023 were 89% of those in 1Q 2022
• The top cable companies added about 65,000 subscribers in 1Q 2023 – compared to about 485,000 net adds in 1Q 2022
• The top wireline phone companies lost about 20,000 total broadband subscribers in 1Q 2023 – compared to about 65,000 net adds in 1Q 2022
• Wireline Telcos had about 500,000 net adds via fiber in 1Q 2023, and about 520,000 non-fiber net losses
• Fixed wireless/5G home Internet services from T-Mobile and Verizon added about 915,000 subscribers in 1Q 2023 – compared to 530,000 net adds in 1Q 2022. 
• The largest broadband provider remained Comcast at 32,324,000 (up only 5,000), followed by Charter (up 76,000 subs to 30,509,000), AT&T (15,345,000, down 41,000) and Verizon (7,528,000, up 44,000)
• The largest fixed wireless service providers were T-Mobile (3,169,000, up 523,000), followed by Verizon (1,866,000, up 393,000).

DURHAM, N.H.—New consumer research from Leichtman Research Group (LRG) finds that 86% of U.S. households have at least one streaming video service from fifteen top subscription video on-Demand and direct-to-consumer (DTC) services, and that 50% of households have four or more DTC streaming video services.  

But as these services become nearly ubiquitous in U.S. homes, password sharing remains a serious problem for streaming services. The study found that: 

• 68% of all DTC services are fully paid for and are not shared with others outside the  household.
• 27% of all DTC services are used in more than one household.
• 13% of DTC services are used and paid for by those that also share them with  someone outside the household.
• 12% of DTC services are used in one household but are borrowed from another  household that is paying for the service. 
• 2% of DTC services are used by multiple households that share costs.
• 5% of DTC services are not paid for because they come with another service 

“About six out of every seven households now have a streaming video service, and half of all  households have four or more streaming services. Yet, many of these services are being  shared,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group,  Inc. “Over one-quarter of all DTC services are shared with others outside the household, including 12% of all DTC services that are ‘borrowed’ from someone else’s subscription. Overall, 17% of households have at least one DTC service that is fully paid for by someone else.” 

Other key findings include:  

• Among all ages 18-44, the mean number of DTC streaming services is 4.8 – compared to 4.0 among ages 45-54, and 2.5 among ages 55+.
• Among ages 18-34, 17% of all DTC services are fully paid for by someone else – compared to 8% among ages 35+.
• Ages 18-34 account for 55% of all DTC services that are fully paid for by someone else. 
• 14% with Netflix have the service fully paid for by someone else – compared to 13%  with HBO Max, and 12% with Hulu. 
• Adults ages 18-44 account for 59% of all with a vMVPD pay-TV service. 
• 73% of vMVPD subscribers are very satisfied with their service – compared to 77%  in 2021, and 69% in 2018.
• 22% of all vMVPD services are shared by multiple households, including 8% of all  vMVPD services that are fully paid for by someone outside the household. 

These findings are based on an online survey of 3,501 households from throughout the United  States and are part of a new LRG study, Internet-Delivered TV Services 2023. This is LRG’s  sixth annual study focused on the vMVPD category, along with other DTC streaming video  services. 

DURHAM, NH— Pay TV providers, including cable, satellite and vMVPD companies representing 92% of the market, lost nearly 5.9 million net video subscribers in 2022, compared to a pro forma loss of about 4.7 million in 2021 according to a new report from Leichtman Research Group.

The top pay-TV providers now account for about 70.2 million subscribers—with the top seven cable companies having about 37.8 million video subscribers, other traditional pay-TV services having 24.1 million subscribers, and the top publicly reporting Internet-delivered (vMVPD) pay-TV services having 8.3 million subscribers. 

That number represents a steep drop from LRG’s estimate of 76.1 video subscriptions in 2021. Although cord cutting has gradually increased year over year for the past decade, LRG reported that the trend eased up between 2020 and 2021 when pay TV providers lost 4,690,000 net video subscribers in 2021, compared to a pro forma net loss of about 4,870,000 in 2020. That blip was probably best represented by the fact that more TV was being consumed during the lockdowns imposed by the global pandemic.

Over the past decade, cord cutting has cost pay TV providers more than 25 million video subscribers, according to LRG.  

Key findings for the year include:

• Top cable providers had a net loss of about 3,530,000 video subscribers in 2022, compared to a loss of about 2,695,000 subscribers in 2021
• Other traditional pay-TV services had a net loss of about 2,720,000 subscribers in 2022 – compared to a loss of about 2,890,000 subscribers in 2021
• Top publicly reporting vMVPDs (not including YouTube TV, which does not regularly report results) added about 370,000 subscribers in 2022 – compared to a gain of about 885,000 subscribers in 2021
• Traditional pay-TV services (not including vMVPD) had a net loss of about 6,250,000 subscribers in 2022 – compared to a net loss of about 5,585,000 in 2021

DURHAM, N.H.—New data from the Leichtman Research Group highlights the increased competition cable operators are facing from wireless carriers who are offering fixed wireless broadband services using their expanding 5G networks. 

The report found that the  largest cable and wireline phone providers and fixed wireless services in the U.S. – representing about 95% of the market – acquired about 3,500,000 net additional broadband Internet subscribers in 2022, compared to a pro forma gain of about 3,725,000 subscribers in  2021. Fixed wireless services accounted for 90% of the broadband net adds in 2022, Leichtman reported. 

“Total broadband net adds in 2022 were slightly lower than last year, and down from about 5  million in 2020, but were more than in any year from 2012-2019.”  said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. 

These top broadband providers account for about 110.5 million subscribers, with top cable  companies having 75.6 million broadband subscribers, top wireline phone companies  having 30.8 million subscribers, and top fixed wireless services having 4.1 million  subscribers. 

Findings for the year include:  

• Overall, broadband additions in 2022 were 94% of those in 2021.
• The top cable companies added about 515,000 subscribers in 2022 – compared to  about 2.8 million net adds in 2021. 
• The top wireline phone companies lost about 180,000 total broadband subscribers  in 2022 – compared to about 210,000 net adds in 2021. 
• Wireline Telcos had about 2.4 million net adds via fiber in 2022, offset by about 2.6  million non-fiber net losses. 
• Fixed wireless/5G home Internet services from T-Mobile and Verizon added about  3,170,000 subscribers in 2022 – compared to about 730,000 net adds in 2021.

Comcast remained the largest broadband provider at the end of 2022, with 32,151,000 subs (up 250,000), followed by Charter at 30,433,000 subs (up 344,000), Cox at 5,560,000 (up 30,000), Altice at 4,282,900 (up 103,300), Mediacom at 1,468,000 (up 5,000), Cable One at 1,060,400 (up 14,400) and Breezeline at 693,781 (down 22,997), according to Leichtman.

The top cable operators gained about 517,103 subs in 2022. 

Among the wireline phone company, AT&T led with 15,386,000 subs (down 118,000), followed by Verizon at 7,484,000 subs (down 119,000), Lumen at 3,037,000 (down 253,000) and Frontier at 2,839,000 (up 40,000), according to Leichtman. The largest wireline phone companies lost about 181,276 broadband subs in 2022. 

Among the Fixed Wireless Services T-Mobile led with 2,646,000 subs (up 2,000,000), followed by  Verizon  at 1,452,000 (up 1,171,000), according to Leichtman.

DURHAM, N.H.—Broadband internet subscription growth was fairly flat for Q3 2022 as churn kept numbers down, however new fixed wireless services now on the market are helping to stem the bleeding, according to a new report from Leichtman Research Group.

LRG found that the largest cable and wireline phone providers and fixed wireless services in the U.S.—representing about 96% of the market—acquired about 825,000 net additional broadband Internet subscribers in 3Q 2022, similar to a pro forma gain of about 820,000 subscribers in 3Q 2021.  These top broadband providers account for about 110.8 million subscribers, with top cable companies having about 75.6 million broadband subscribers, top wireline phone companies having over 32 million subscribers, and top fixed wireless services having about 3.2 million subscribers.

Overall, LRG reports that broadband additions doubled in 3Q 2022, compared to 3Q 2021, with top cable companies adding about 40,000 subscribers in 3Q 2022—compared to about 590,000 net adds in 3Q 2021. The top wireline phone companies lost about 135,000 total broadband subscribers in 3Q 2022—compared to about 40,000 net adds in 3Q 2021 and wireline telcos had about 550,000 net adds via fiber in 3Q 2022, and about 685,000 non-fiber net losses.

As expected, the growth of fixed wireless/5G home internet services from T-Mobile and Verizon helped keep numbers up, as both companies more than tripled their subscriber count, adding about 920,000 subscribers in 3Q 2022, compared to about 190,000 net adds in 3Q 2021, LRG said.

“Top broadband providers added about 825,000 subscribers in 3Q 2022, including 920,000 net adds for fixed wireless services, along with a minor gain for cable, and net losses for wireline phone providers,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “Over the past year, fixed wireless services have accounted for nearly 80% of the approximately 3,260,000 net broadband additions.”

DURHAM, N.H.—The biggest U.S. pay-TV providers together lost about 785,000 subscribers in the third quarter, an increase in the loss from Q3 2021 when 650,000 households dropped their subscription, according to Leichtman Research Group (LRG).

These top providers, which represent about 92% of the market, now account for 71.4 million subscribers. Of those, the top seven cable companies have about 38.6 million video subscribers. Other pay-TV services have about 24.8 million subscribers, and the top publicly reporting internet-delivered pay-TV services have more than 8 million, the research organization said.

Other Leichtman findings:

• The top cable providers had a net loss of 980,000 video subscribers in Q3 2022 compared to a decline of 700,000 from the same quarter last year.
• Other traditional pay-TV services had a net loss of about 700,000 for the quarter, a drop of 70,000 more subscribers compared to Q3 2021.
• The top publicly reporting vMVPDs added about 900,000 in the quarter, up 220,000 from the same quarter last year.

“Spurred by a strong quarter from internet-delivered vMVPD services, pay-TV net losses of about 785,000 in 3Q 2022 were more modest than in the first two quarters of the year,” said Bruce Leichtman, LRG president and principal analyst. “Not including YouTube TV, which does not regularly report subscriber totals, vMVPDs had nearly 900,000 net additions in the quarter. This was the third most quarterly net adds ever for the top publicly reporting vMVPD services.”

More information is available on the research group’s website. 

DURHAM, N.H.—The number of U.S. TV households with access to live pay-TV, whether via cable, satellite, Telco or an internet vMVPD subscription, has dropped to 66%, down from 88% a decade ago, according to the findings of new research from Leichtman Research Group (LRG).

The findings also highlight ongoing worries about the future of the pay TV industry in that one third of the respondents (34%) reported that they had never had a pay TV service.

“Two-thirds of U.S. TV households now get a live pay-TV service, a significant decrease from 79% five years ago,” said Bruce Leichtman, LRG president and principal analyst. “The decline in pay-TV subscribers is not solely a function of those disconnecting services but is also related to a slowdown in those entering or reentering the category.”

The research shows non-subscribers to pay-TV services fall into three similar-sized groups based upon their prior pay-TV subscription. About 31% on non-subscribers last had a pay-TV service within the past three years; 35%, over three years ago; and 34% never had a pay-TV services. Of those never having a subscription, 52% are aged 18 to 34, according to the findings.

The research also revealed:

• 73% of 45-year-old and older adults have a pay-TV service compared to 57% of those 18 to 44 years old
• 46% of those who have moved within the past year do not have a pay-TV service, which is higher than in previous years
• 73% of three-or-more-TV households have a pay-TV service; 65% of two-TV households subscribe; and 52% of single-TV households have a subscription to a pay-TV service
• The mean household income of those with subscriptions is 11% higher than the mean income of households without subscriptions
• 13% of pay-TV subscribers say they are likely to switch from their current provider in the next six months, compared to 14% in 2020 and 13% in 2017

The findings are based on a survey of 1,850 U.S. households. They are part of LRG’s “Pay-TV in the U.S. 2022” annual study, the firm’s 20th such study. The survey was conducted in September. The survey sample included 1,235 online respondents and 615 phone respondents.

The overall sample has a statistical margin of error of +/- 2.3%. The online sample used exclusively for some questions has a statistical margin of error of +/- 2.8%. 

More information is available on the LRG website.

DURHAM, NH—The migration away from the TV set as the most popular source of news and entertainment in the American household continues as a new consumer research study from Leichtman Research Group finds that 59% of adults in the U.S. watch video on non-TV devices (including mobile phones, home computers, tablets, and eReaders) daily—compared to 55% in 2020, 43% in 2017, and 18% in 2012.

Not surprisingly younger individuals are most likely to watch video on non-TV devices, LRG found: Among all ages 18-34, 83% watch video on a non-TV device daily—compared to 64% of ages 35-54, and 35% of ages 55 and above.

Other related findings include:

• 51% of adults watch YouTube on a non-TV device daily, followed by news clips at 35%
• 50% of adults watch video on a mobile phone daily, up from 44% in 2020, and 33% in 2017
• 83% of households have a subscription video on-Demand (SVOD) service from Netflix, Amazon Prime, and/or Hulu, compared to 78% in 2020, and 64% in 2017
• Overall, 64% of U.S. households now have more than one SVOD service, compared to 55% in 2020, and 33% in 2017
• 43% of all adults stream a top SVOD service daily, compared to 40% in 2020, and 29% in 2017
• Including 11 additional streaming video services, the mean number of SVOD/DTC services among all households is 3.6, compared to 2.9 in 2020

“Nearly 60% of adults now watch video on a non-TV device daily.  This includes half of all adults watching video on a mobile phone every day, up from one-third of adults five years ago,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “While non-TV devices provide the ability to watch video anywhere, the most common location for watching video on non-TV devices continues to be in the home.  Eighty-two percent of those who watch video on a mobile phone, and 85% of those who watch video on a tablet or eReader, do so at home.”

These findings are based on a survey of 1,900 households nationwide and are part of a new LRG study, Emerging Video Services 2022.  This is LRG’s 16th annual study on this topic.

DURHAM, N.H.—Leichtman Research Group (LRG) is reporting that fixed wireless broadband providers gained market share in Q2, 2022, with 800,000 net ads while the largest cable operators lost 60,000 broadband subs and the top wireless phone companies lost 85,000 subs. 

Overall, the largest cable, wireline phone providers and fixed wireless services in the U.S. acquired about 670,000 net additional broadband Internet subscribers in Q2 2022, compared to a pro forma gain of about 1,000,000 subscribers in Q2 2021.  

The top broadband providers covered by the report serve about 96% of the broadband market, LRG said. 

The figures highlight a slowdown in new broadband subs for cable operators following the large sub growth they reported during the height of the pandemic. 

“Top broadband providers added about 670,000 subscribers in Q2 2022, reflecting over 800,000 net adds for fixed wireless services, along with modest net losses for cable and wireline phone providers,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “Over the past year, there were about 3,260,000 net broadband adds, with fixed wireless services accounting for 56% of them.”

Overall, the top broadband providers account for about 110 million subscribers, with top cable companies having about 75.6 million broadband subscribers, top wireline phone companies having about 32.2 million subscribers, and top fixed wireless services having about 2.2 million subscribers.

Other key findings include: 

• Overall, broadband additions in Q2 2022 were 67% of those in Q2 2021.
• The top cable companies lost about 60,000 subscribers in Q2 2022 – compared to about 840,000 net adds in Q2 2021.
• The top wireline phone companies lost about 85,000 total broadband subscribers in Q2 2022 – compared to about 50,000 net adds in Q2 2021.
• Wireline Telcos had about 490,000 net adds via fiber in Q2 2022, and about 575,000 non-fiber net losses.
• Fixed wireless/5G home Internet services from T-Mobile and Verizon added about 815,000 subscribers in Q2 2022 – compared to about 120,000 net adds in Q2 2021.

DURHAM, N.H.—Major pay TV providers continue to hemorrhage video subscribers, with the Leichtman Research Group (LRG) reporting that the largest pay TV providers in the U.S. – representing about 92% of the market – lost about 1,925,000 net video subscribers in Q2 2022. That is a notable increase from the pro forma net loss of 1,235,000 in Q2 2021. 

The losses, however, were about the same as those posted in the first quarter of this year, LRG noted. 

The top pay TV providers now account for about 72.2 million subscribers – with the top seven cable companies having about 39.5 million video subscribers, other traditional pay TV services having about 25.5 million subscribers, and the top publicly reporting Internet-delivered (vMVPD) pay TV services having about 7.2 million subscribers.

“The second quarter of 2022 marked the second consecutive quarter with over 1.9 million net pay TV losses,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “Over the past year, top pay TV providers had a net loss of about 5,425,000 subscribers, compared to a net loss of about 4,550,000 over the prior year.”

Other key findings for the quarter include:

• Top cable providers had a net loss of about 950,000 video subscribers in Q2 2022 – compared to a loss of about 590,000 subscribers in Q2 2021
• Other traditional pay TV services had a net loss of about 710,000 subscribers in Q2 2022 – compared to a loss of about 700,000 subscribers in Q2 2021
• Top publicly reporting vMVPDs had a net loss of about 265,000 subscribers in Q2 2022 – compared to a gain of about 55,000 subscribers in Q2 2021

DURHAM, NH—Consumers who want to literally cut the final cord from their cable providers are accelerating their adoption of fixed wireless home internet services from telco competitors like T-Mobile and Verizon, according to a new report from Leichtman Research Group.

Although the latest report shows that the largest cable and wireline phone providers and fixed wireless services in the U.S.—representing about 96% of the market—logged a healthy gain of 1,065,000 net additional broadband Internet subscribers in 1Q 2022—a pro forma gain of about 1,120,000 subscribers in 1Q 2021—that number included an increase of 530,000 subscribers of fixed wireless/5G home Internet services from T-Mobile and Verizon, a nearly five-fold increase compared to 110,000 net adds in 1Q 2021.  

The top broadband providers account for about 109.3 million subscribers, with top cable companies having about 75.6 million broadband subscribers, top wireline phone companies having about 32.3 million subscribers, and top fixed wireless services having about 1.4 million subscribers.

Findings for the quarter include:

• Overall, broadband additions in 1Q 2022 were 95% of those in 1Q 2021
• The top cable companies added about 480,000 subscribers in 1Q 2022, 52% of the net additions for the top cable companies in 1Q 2021
• The top wireline phone companies added about 50,000 total broadband subscribers in 1Q 2022, compared to about 80,000 net adds in 1Q 2021—Wireline Telcos had about 480,000 net adds via fiber in 1Q 2022, and about 430,000 non-fiber net losses

Despite the increase in "cord-cutting," the very definition of the term is relative since most consumers are just dropping their TV subscriptions, but keeping their broadband services with the same pay-TV provider. The increasing adoption of using wireless 5G services to replace traditional wired broadband internet, however, is rapidly changing the face of how consumers access the internet, according to the research firm. 

“Top broadband providers added over one million subscribers in 1Q 2022, similar to last year’s first quarter, but the distribution of net broadband additions differed from a year ago,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “Fixed wireless services accounted for half of the net broadband adds in 1Q 2022, compared to about 10% of the net adds in 1Q 2021.”

DURHAM, N.H.—The largest pay TV providers continue to hemorrhage video subscribers, losing about 1,955,000 net video subscribers in Q1 2022, compared to a pro forma net loss of 1,910,000 in Q1 2021, and 1,960,000 in Q1 2020, according to a new study from the Leichtman Research Group (LRG).

The largest pay TV providers in the U.S.—representing about 93% of the market—now account for about 74.1 million subscribers. The top seven cable companies have about 40.5 million video subscribers, other traditional pay TV services have 26.2 million subscribers, and the top publicly reporting Internet-delivered (vMVPD) pay TV services have about 7.4 million subscribers, LRG reported. 

“Pay TV net losses of about 1.95 million in 1Q 2022 were similar to the net losses in the first quarters of 2021 and 2020,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “Over the past year, top pay TV providers had a net loss of about 4,735,000 subscribers, similar to a loss of about 4,820,000 over the prior year.”

Other key findings for the quarter include:

• Top cable providers had a net loss of about 825,000 video subscribers in Q1 2022 – compared to a loss of about 780,000 subscribers in Q1 2021.
• Other traditional pay TV services had a net loss of about 625,000 subscribers in Q1 2022 – compared to a loss of about 865,000 subscribers in Q1 2021.
• Top publicly reporting vMVPDs had a net loss of about 505,000 subscribers in Q1 2022 – compared to a loss of about 265,000 subscribers in Q1 2021.

The report found that Comcast is the largest pay TV provider with 17.66 million video subs (down 512,000 in Q1, 2022), followed by Charter (down 112,000 subs to 15.72 million), DirecTV (down 300,000 to 14.3 million), Dish TV (down 228,000 to 7.99 million), Hulu + Live TV (down 200,000 to 4.1 million), Verizon FiOS (down 78,000 to 3.57 million), Cox (down 80,000 to 3.31 million),  and Altice (down 73,600 to 2.66 million). 

For more information about LRG, call (603) 397-5400 or visit www.LeichtmanResearch.com.

Despite the increase in cordcutting, drawing viewers away from pay-TV, interest in live news and sports—a staple of traditional linear TV—remains high among older, wealthier viewers, according to a recent study from Leichtman Research Group

When asked the importance of various programming genres, overall, 49% of adults rated news as very important (8-10) and 41% rated sports as very important, LRG said. While neither of these are the highest rated genre overall––that distinction goes to movies at 69%––there are significant differences in the importance of news and sports to pay-TV subscribers versus nonsubscribers. 

The study found that:

• 56% of pay-TV subscribers rate news as very important, compared to 32% of non-subscribers
• 49% of pay-TV subscribers rate sports as very important, compared to 21% of non-subscribers

The rated importance of these genres is also higher among those in the demographic categories that (unsurprisingly) are typically more likely to get a pay-TV service.

News is more important among older age individuals, and in higher income households: 

• 66% of ages 55+ rate news as very important, compared to 48% of ages 35-54, and 32% of ages 18-34 
• 57% with annual household incomes >$75,000 rate news as very important, compared to 45% with household incomes <$75,000

Sports is more important in higher income households, as well as among men:

• 52% with household incomes >$75,000 rate sports as very important, compared to 39% with household incomes of $30,000 - $75,000, and 27% with household incomes <$30,000
• 49% of men rate sports as very important, compared to 34% of women

Going forward, these genres will continue to play important roles in balancing the legacy model with direct-to-consumer offerings. However these options are not mutually, LRG added, as consumers will continue to get the services and content that best serve their households’ needs and budgets.

DURHAM—A third of all Netflix subscribers share their passwords with non-subscribers, according to a new report from Leichtman Research Group, which also revealed that 64% of Netflix subscribers stay honest, paying fully for the service and not sharing outside of their household. 

Specifically, the report showed that 15% of Netflix services are used and paid for by those that also share them with someone outside the household;  5% of Netflix services are used in one household but are borrowed from another household that is paying for the service and  3% of services are used by multiple households that share costs. An additional 3% of Netflix services are not paid for because they come with another service.

The findings are based on an online survey of 4,400 households nationwide and are part of a new LRG study, Internet-Delivered Pay-TV Services 2022.  This is LRG’s fifth annual study focused on the vMVPD category, along with other DTC streaming video services.

Overall, LRG found that 83% of U.S. households have at least one streaming video service from 15 top direct-to-consumer (DTC) and subscription video on-Demand (SVOD) services; including 67% of all households with Netflix. 

The survey revealed that 29% of all DTC services are shared with others outside the household and that 12% of all DTC services are fully paid for by someone outside the household. In addition, 34% of adults ages 18-34 have at least one DTC service that is fully paid for by someone else—compared to 14% of ages 35+.

Five percent of all households had Netflix in the past year, but currently do not— similar to 6% for Hulu, 5% for Amazon Prime, and 5% for live pay-TV services. Adults ages 18-44 account for 65% of all with a vMVPD pay-TV service. 

When it looked at vMVPDs, (YouTube TV, Hulu, Sling TV, etc.) the survey showed that nearly 80% of vMVPD subscribers said they are very satisfied with their service—compared to 76% in 2020, and 69% in 2018. Password sharing was also fairly common among these subscribers as well, with 23% of all vMVPD services shared by multiple households, including 7% of all vMVPD services that are fully paid for by someone outside the household.

The report comes amid a slowdown in the rate of subscriptions for the world’s largest streamer and provides more fodder for Netflix to justify its recent attempts to crack down on password sharing, which, if followed through, could add an estimated $1.6 billion to its bottom line annually.

“Password sharing is an inherent feature of most streaming services. Sharing helps to expand the user base and retain customers, but it also creates a gap between the number of households that have a service and actual paying subscribers,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “For example, about two-thirds of U.S. households report having Netflix, but this includes about 10% of U.S. households that don’t pay for the service because it is borrowed from someone else’s subscription.”

DURHAM, N.H.—Leichtman Research Group (LRG) has issued a new report showing that the largest cable and wireline phone providers in the U.S. – representing about 96% of the market – acquired about 2,950,000 net additional broadband Internet subscribers in 2021, compared to a pro forma gain of about 4,860,000 subscribers in 2020, and about 2,550,000 in 2019.   

While the new subscribers were down substantially from 2020, LRG noted that the sub gains in 2021 were in fact higher than those in the pre-pandemic years of 2016 to 2919. 

As usual in recent years, cable dominated market, accounting for 95% of the new subscribers. 

These top broadband providers now account for about 108.4 million subscribers, with top cable companies having about 75.7 million broadband subscribers, and top wireline phone companies having about 32.7 million subscribers.

Key data points from the report include:  

• Overall, broadband additions in 2021 were 61% of the total in 2020, and 115% of the total in 2019.
• The top cable companies had about 2.8 million net adds in 2021, 58% of the cable broadband additions in 2020, and 89% of additions in 2019.
• The top wireline phone companies added about 150,000 subscribers in 2021 – compared to a gain of about 30,000 subscribers in 2020, and a net loss of about 590,000 subscribers in 2019.
• Telcos had about 1.8 million net adds via fiber in 2021 – compared to about 1.64 million fiber net adds in 2020.
• Among these top providers, cable companies accounted for 95% of the net broadband adds in 2021 – compared to 99% in 2020, and 123% in 2019.
• The two largest broadband providers were Comcast, with 31,901,000 subs, up by 1,327,000 from 2020 and Charter, with 30,089,000 subs, up 1,210,000 subs from 2020. 

“Broadband additions proved to be resilient in 2021 following 2020’s pandemic-related surge in subscribers,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “The top broadband providers added significantly fewer subscribers in 2021 than in 2020, but the net adds in 2021 were higher than in each year from 2016-2019.”

More information including sub counts for individual companies can be found at www.LeichtmanResearch.com.

DURHAM, NH—Leichtman Research Group, Inc. (LRG) has found that the largest cable and wireline phone providers in the U.S. acquired about 630,000 net additional broadband Internet subscribers in 3Q 2021.

Among the largest operators, which represent about 96% of the market, that is a big drop from the pandemic fueled broadband sub boom that added 1,525,000 subscribers in 3Q 2020. But the numbers are in line with the 615,000 subs added in 3Q 2019, and the results from 3Q 2018, when there were about 600,000 net adds. 

LRG noted that these top broadband providers now account for about 107.9 million subscribers, with top cable companies having about 75.2 million broadband subscribers, and top wireline phone companies having about 32.7 million subscribers.

“Broadband additions returned to pre-pandemic levels in the third quarter of 2021,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “The top broadband providers added significantly fewer subscribers than in last year’s third quarter, but had a similar number of net adds as in 3Q 2019 and 3Q 2018.”

LRG also reported that the top cable companies added about 590,000 subscribers in 3Q 2021, which is only 45% of the net additions the top cable companies had in 3Q 2020.

Meanwhile the top wireline phone companies added about 40,000 total broadband subscribers in 3Q 2021, a fraction of the 3Q 2020 net adds of about 200,000.

Telcos had about 475,000 net adds via fiber in 3Q 2021, and about 435,000 non-fiber net losses. 

Comcast once again ended the quarter as the largest broadband provider with 31.7 million subs and 300,000 net additions, followed by Charter (29.9 million subs and 265,000 additions), 

For more on the report and data on additional operators visit www.LeichtmanResearch.com. 

DURHAM, N.H.—New consumer research from the Leichtman Research Group is reporting ongoing drops in pay TV penetration, with only 71% of TV households nationwide having some form of pay-TV service in 2021. 

That marks a significant five year decline from the 82% penetration rate in 2016 and an even bigger 10 year decline from 87% in 2011. 

The declines were even worse among younger demos. In 2021 among TV households, 64% of adults aged 18-44 and 77% of those older than 45 had a pay-TV service; in contrast 77% of adults ages 18-44 and 86% of ages 45+ had a pay-TV service in 2016. 

This has also resulted in a massive change in the way video is delivered into TVs in the home. The Leichtman survey found that 37% of all TV sets in use have a traditional pay-TV providers’ set-top box – compared to 58% in 2016

“The percent of U.S. TV households with a live pay-TV service significantly declined from 82% to 71% over the past five years,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “The penetration of pay-TV remains lowest among younger adults and the categories that they tend to populate, including movers and renters.” 

The new report also found that:  

• 41% of those that moved in the past year do not currently have a pay-TV service – a higher level than in previous years.
• 35% of renters do not have a pay-TV service – compared to 25% of homeowners.
• 30% of pay-TV non-subscribers last had a pay-TV service within the past 3 years, 36% last had a pay-TV service >3 years ago, and 34% never had a pay-TV service.
• 54% of pay-TV non-subscribers that never had a service are ages 18-34 – while 28% of non-subscribers that formerly had pay-TV are in that age range.
• 26% of adults agree that it is OK to use a friend’s log-in passwords to watch live TV, including 40% of ages 18-34.

These findings are part of a new LRG study, “Pay-TV in the U.S. 2021.”  

“Pay-TV in the U.S. 2021” is based on a survey of 2,000 adults aged 18+ from throughout the U.S.  The random sample of respondents was distributed and weighted to best reflect the demographic and geographic make-up of the U.S.  The survey, conducted in September-October 2021, included a sample of about 1,200 online and about 800 via telephone (including landline and cell phone calls).  The overall sample has a statistical margin of error of +/- 2.2%.  The online sample used exclusively for some questions has a statistical margin of error of +/- 2.8%.

More information about the report is available at www.LeichtmanResearch.com.

DURHAM, N.H.—New consumer research from Leichtman Research Group (LRG) finds that 78% of all U.S. households have a subscription video on-Demand (SVOD) service from Netflix, Amazon Prime, and/or Hulu. 

That is flat from the 78% reported in 2020, and up from 74% in 2019, and 59% in 2016, according to a survey of 2,000 households nationwide that is part of a new LRG study, “Emerging Video Services 2021”. This is LRG’s fifteenth annual study on this topic.

Overall, 58% of U.S. households now have more than one of these SVOD services – compared to 55% in 2020, 51% in 2019, and 28% in 2016.

The survey also found that 41% of all adults stream a top SVOD service daily – compared to 40% in 2020, 33% in 2019, and 24% in 2016. 

When the researchers asked about eleven additional streaming video services, it found that 82% of all households have at least one SVOD or DTC service, and 53% have three or more services. 

The mean number of SVOD/DTC services among all households is 3.1 – compared to 2.9 in 2020, LRG reported. 

The report noted that 54% of adults watch video on non-TV devices (including mobile phones, home computers, tablets, and eReaders) daily – compared to 55% in 2020, 51% in 2019, and 41% in 2016, with higher usage among younger people. 

The survey found that 81% of people aged 18-34 watch video on non-TV devices daily – compared to 59% of aged 35-54, and 25% of who are 55 and older. 

“The percent of households with a top SVOD service held steady in 2021, and those using any of these services daily also levelled off after being pulled forward last year due to the coronavirus pandemic,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “While the breadth of households with a major SVOD service is similar to last year, those with multiple top SVOD services continued to expand.  And, including eleven additional streaming video services, 27% of households now report having five or more SVOD or DTC services.”

Durham, N.H.—Despite predictions that operators would see a marked slowdown in new broadband subs this year after the big gains they made in 2020 during the pandemic lockdowns, the largest cable operators and telcos acquired about 890,000 net additional broadband Internet subscribers in 2Q 2021, according to the Leichtman Research Group (LRG). 

That was down from a pro forma gain of about 1,260,000 subscribers in 2Q 2020 but still above expectations.  

“Net broadband additions in the second quarter of 2021 were the most in any second quarter in the past decade, except for 2Q 2020,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “Top broadband providers added 8,000,000 subscribers over the past two years, including about 4,330,000 net adds over the past year, and about 3,670,000 net adds over the prior year.”

These top broadband providers now account for about 107.4 million subscribers, with top cable companies having about 74.7 million broadband subscribers, and top wireline phone companies having about 32.7 million subscribers, LRG reported. 

LRG also reported that the top cable companies added about 840,000 subscribers in 2Q 2021 (60% of the net additions for the top cable companies in 2Q 2020) and that top wireline phone companies added about 50,000 total broadband subscribers in 2Q 2021. Those gains contrasted a net loss of about 140,000 subscribers in 2Q 2020. 

Telcos had about 400,000 net adds via fiber in 2Q 2021, and about 350,000 non-fiber net losses

The top two broadband provider remained Comcast with 31.39 million (up 354,000 in 2Q 2021) followed by Charter at 29.64 million (up 400,000).

For more information visit www.LeichtmanResearch.com.

DURHAM, N.H.—New consumer research from Leichtman Research Group finds that watching video on connected devices is now a daily habit in many homes, with two in five adults (39%) watching video on a connected device each day but the usage, which jumped during the pandemic, is leveling off. 

The survey also found that the habit is widespread, both among pay TV subs and people without a pay TV service. About 35% of adults with a pay-TV service watch video via a connected TV device daily, compared to 50% of pay-TV non-subscribers.

Overall, 60% of adults watch video via a connected TV device at least weekly. That is about the same as 2020 (59%) but notably up from 52% in 2019, 40% in 2016, and 10% in 2011.

“Use of connected TV devices levelled off over the past year after being pulled forward due to the coronavirus pandemic last year,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “Still, 39% of adults watch video on a TV via a connected device daily, and 60% at least weekly. Over 80% of TV households in the U.S. now have at least one connected TV device, with a mean of 4.1 devices per connected TV household."

Younger individuals are most likely to use connected TV devices. Among all ages 18-34, 54% watch video on a TV via a connected device daily, compared to 43% of ages 35-54 and 22% of ages 55+.

About 55% of TV households have at least one stand-alone streaming device, up from 49% in 2019, 33% in 2016, and 3% in 2011

In addition, about 43% of all TV sets in U.S. households are connected smart TVs, an increase from 32% in 2019, 19% in 2016, and 7% in 2014. 

But as usage has increased, spending on new sets is down as consumers are able to buy larger sets for less money. The survey found that spending on a new TV was about $530, down from $795 in 2016.

These findings are based on a survey of 2,000 TV households in the U.S., and are part of a new LRG study, `Connected TVs 2021.’ 

This is LRG’s eighteenth annual study on TVs in the U.S.

DURHAM, N.H.—The rapid growth in broadband internet subscribers since the start of the pandemic continued in the first quarter of 2021, with the largest cable and telco providers adding 1,020,000 net subs, according to new data from the Leichtman Research Group Inc. (LRG). 

LRG also noted that the largest U.S. cable and wireline phone providers in the U.S., which account for about 96% of the U.S. market, now have about 107 million subscribers.

Cable serves most of them, with about 73.7 million broadband subscribers and it gobbled up most of the gains with 935,000 new subs in Q1 2021. 

Top wireline phone companies had about 33.3 million subscribers with 85,000 new subs in Q1 2021 compared to a net loss of about 60,000 subscribers a year earlier. 

Bruce Leichtman, president and principal analyst for LRG, explained that the 1 million new subs in Q1 2021, “marked the fourth time in the past five quarters that there were more than one million net broadband additions in the U.S. Over the past year, there were about 4,665,000 net broadband adds, compared to about 2,760,000 net broadband adds over the prior year.”

Comcast added the largest number of new subs with 460,000, boosting its broadband subs to 31.0 million in Q1 2021, followed by Charter with a 460,000 bounce for a total of 29.3 million broadband subs. 

DURHAM, N.H.—The sharing of streaming services is a hot-topic in the industry right now, and Leichtman Research Group is the latest to share details on consumer behavior regarding the trend. According to LRG’s recent study, 27% of the top 11 direct-to-consumer and streaming accounts are being used in more than one household.

LRG’s study found that 82% of U.S. households have at least one streaming service, with 51% of them having three or more. While 69% are fully paid and are not shared with anyone outside the household, 27% of them are (the other 4% represent DTC services that come with another service).

The 27% breaks down like his: 13% of services are used and paid for by those that also share them with someone outside the household; 12% are used in one household but are borrowed from another household that is paying for the service; and 2% of services are used by multiple households with them sharing costs. Overall, 16% of all households have at least one DTC service that is fully paid for by someone else.

The younger age group (18-34) is the most likely to use a DTC service someone else pays for, with 26% reporting that they do. For those over 35, only 12% say they use a service that they do not pay for.

PLUS: Report: 88 Million Streaming Accounts Being Shared

“Password sharing is prevalent throughout the streaming video industry. Over a quarter of DTC streaming video services are shared with others outside the household, including 12% of all services that are ‘borrowed’ from someone else’s subscription,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “Yet, sharing of streaming services should not solely be viewed as lost revenue, as the ability to share with others is also part of the retention strategy for the services.”

LRG also looked at vMVPDs in its report, finding that 63% of 18-44 year olds have a vMVPD pay-TV service. Consumer satisfaction with these services is up, with the 77% reporting to be very satisfied, compared to 69% in 2018. In addition, just 13% are likely to switch from a vMVPD service in the next six months; that was at 27% in 2018.

There are still sharing issues with vMVPDs. LRG found that 20% of all vMVPD services are shared by multiple households, including 6% that are paid fully by someone outside of the household.

For more information, visit www.leichtmanresearch.com.  

DURHAM, N.H.—While Leichtman Research Group’s report on the largest pay-TV providers’ third quarter 2020 video subscribers showed a net loss of about 120,000 subscribers, it actually represents one of the best quarters for the industry recently, in large part thanks to the growth of virtual MVPD services. It may be even better if recent YouTube TV news is factored in.

Q3 2020’s loss of 120,000 subscribers is a huge swing from the nearly 945,000 subscribers LRG reported were lost in Q3 2019. All services saw a smaller dip in its subscriber numbers year-over-year: satellite TV services lost about 775,000 in Q3 2020 compared to 1.14 million in 2019; the top seven cable companies lost 375,000, better than 2019’s 410,000; and telephone providers lost just 5,000 versus the 210,000 lost last year. 

When you combine the vMVPD services that LRG reports on (Hulu + Live TV, Sling TV, AT&T TV Now and fuboTV), which added 1.03 million subscribers in Q3 2020 (up year-over-year from 815,000), you get the net loss of 120,000 subscribers.

However, LRG’s report does not include numbers from the Google-owned vMVPD YouTube TV. It was announced in October that YouTube TV had crossed the 3 million subscriber milestone, including the addition of 1 million subscribers in 2020. It’s possible that the gains from YouTube TV could put pay-TV in the black for Q3 2020.

In total, LRG reports that the top pay-TV providers now have 82.6 million subscribers. That is made up of 44.3 million from the top seven cable companies; 22.6 million from satellite TV services; 8 million from top telephone providers; and 7.7 million from the available vMVPD services.

“With the return of live sports in 3Q 2020, internet-delivered vMVPDs had more net additions than in any previous quarter, and pay-TV overall had fewer net losses than in any quarter since 1Q 2018,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group Inc.  “It is more important than ever before to recognize vMVPDs as a key segment of the live pay-TV industry. Hulu + Live TV is now the fifth largest pay-TV service in the U.S., and YouTube TV (which is not part of LRG’s tracking data because it does not formally report quarterly results) now has over 3 million subscribers, including 1 million net additions thus far in 2020.”

DURHAM, N.H.—One of out five consumers are fine with just having some combination of Netflix, Amazon Prime Video, Disney+ or any other SVOD platform as their viewing option at home, according to a new survey from the Leichtman Research Group.

The survey found that 20% of U.S. TV households have a SVOD service but no pay-TV subscription. However, a majority (60%) still do subscribe to both a pay-TV and SVOD service. Only 14% said that they only had a pay-TV service, while just 6% said they had neither pay-TV or SVOD.

Just under three-fourths of households (74%) get a live pay-TV service, be it cable, DBS, telco or an vMVPD. That is down from responses in 2015 (85%), 2010 (88%) and 2005 (82%). Among those with a pay-TV service (cable, telco, DBS), 79% have an SVOD service; if they have an vMVPD that number jumps to 96%. About 76% of pay-TV non-subscribers have an SVOD. 

SVOD isn’t the only way people are watching content if they don’t have pay-TV, as LRG reports that 13% of pay-TV non-subscribers utilize a TV antenna.

The older a respondent was the more likely they were to have a pay-TV subscription: 81% for 55 year olds and older; 76% of ages 35-54; and 63% of ages 18-34. With the youngest age bracket, 27% said they had both a pay-TV service and SVOD, while 46% said they just had an SVOD.

“Traditional pay-TV services from cable, satellite and telco providers are now in less than two-thirds of U.S. households, while an increasing number of households are opting to get live pay-TV from internet-delivered vMVPD services,” said Bruce Leichtman, president and principal analyst for LRG. “Consumers continue to choose the video services that best fit their household needs. For 60% of households, this includes both pay-TV and SVOD services.”

Additional findings from LRG’s report include how 38% of those who moved in the last year do not currently have a pay-TV service, higher than any previous year. Also, 33% of pay-TV non-subscribers had a pay-TV service within the last three years, 34% last subscribed more than three years ago and 33% never had a pay-TV service.

DURHAM, N.H.—The last decade has seen a substantial increase of connected TV devices in U.S. homes, as Leichtman Research Group has shared new consumer research that 80% of U.S. TV households have at least one internet-connected TV device, up from 24% in 2010.

LRG identifies connected TV devices as smart TVs, stand-alone streaming devices, connected video game systems and/or connected Blu-ray players. The 80% mark is up from 74% in 2018.

As far as viewing habits surrounding connected TV devices, 40% of adults in U.S. TV households watch video on a TV via a connected device daily. That is compared to 29% in 2018, 12% in 2015 and 1% in 2010. Age range does impact use of connected TV devices—18% of adults 55 and older watch connected TV devices daily; that stat is 48% for those 35-54 and 55% for 18-34 year olds.

PLUS: Connected TV Usage Keeps Momentum as Traditional TV Viewing Normalizes

Additional findings from LRG include that of those with connected TV devices, 64% have three or more, with an average of 4.1 devices per household. Breaking it down be device, 58% of homes have at least one connected TV, while 56% have at least one stand-alone streaming device.

LRG says that there are now nearly 400 million connected TV devices in U.S. TV households, up from 250 million in 2016.

The full “Connected and 4K TVs 2020” study is available on LRG’s website. 

DURHAM, N.H.—Broadband internet from the largest cable and telephone providers in the U.S. saw an increase in subscribers by 1.165 million in the first quarter of 2020, according to the latest report from Leichtman Research Group. This is the most additions in any quarter since Q1 2015, Leichtman reports.

The 1.165 million net subscribers for Q1 2020 was up 122% from Q1 2019, which saw a net gain of 955,000 subscribers. 

The top broadband providers (Comcast, Charter, Cox, AT&T, Verizon, CenturyLink and others) now account for 102.4 million, representing 96% of the broadband market. Cable companies have 69.2 million broadband subscribers, having added 1.23 million subscribers in Q1 2020, a 132% increase over Q1 2019 numbers.

PLUS: Broadband Usage Spiked 47% in Q1, Says OpenVault

Wireline phone companies, however, saw a loss in Q1 2020 of about 65,000 subscribers; they had a net gain of 20,000 in Q1 2019.

Overall, within the past year, there was about a 2.75 million net gain in broadband subscribers, up from 2.635 million from the year prior, Leichtman reports.

“With the onset of the coronavirus pandemic, there were more quarterly net broadband additions in Q1 2020 than in any quarter in five years,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group. “Top cable companies performed particularly well, having the most net additions for cable broadband services in any quarter in 13 years.

The full Leichtman Research Group report is available online. 

DURHAM, N.H.—Homes that subscribe to vMVPD services—like YouTube TV, Hulu Live+ TV or AT&T TV Now—came over from traditional pay-TV services about half the time, according to a new report from Leichtman Research Group.

LRG’s study, “Internet-Delivered Pay-TV Services 2020,” showed that 44% of current vMVPD subscribers had switched directly from a traditional pay-TV service. Among others who switched subscriptions, 18% came from another vMVPD and 12% had most recently been non-subscribers to any pay-TV service. For 26% of vMVPD subscribers, they still subscribe to a traditional pay-TV service.

A majority of vMVPD subscribers (65%) fall between the ages of 18 and 44. According to LRG, 18% of 18-44 year olds overall have a vMVPD service; that falls to 9% for ages 45 and above.

Other findings from the report revealed that 76% of vMVPD subscribers are “very satisfied” with their service, which is up from 69% in 2018. Only 14% said they are very likely to switch from a vMVPD service in the next six months.

Of those that have both a vMVPD and traditional pay-TV service, 42% cite having more options as the top reason for subscribing to both; 15% cite serving multiple people or TVs in the home, 14% cite channels or content only available from one type and 8% cite testing or trialing a service.

In addition, vMVPD users are more likely to have additional streaming options. LRG found that 95% of vMVPD subscribers also subscribe to a SVOD (Netflix, Amazon Prime, Hulu) service, compared to 74% of traditional pay-TV subscribers and 77% of non-subscribers. Overall, 79% of all households have at least one SVOD or DTC streaming video service; 44% have three or more.

“More than ever, consumers are exploring the trade-offs between traditional and vMVPD pay-TV services—along with an increasing number of streaming options—to find the combination of content and cost that best meets their needs,” said Bruce Leichtman, president and principal analyst for LRG. “Younger adults and those with more people and TVs in the household have thus far proven to be most attracted to the lower-cost and lower-channel vMVPD options.”

For more information, visit www.leichtmanresearch.com.  

DURHAM, N.H.—Pay-TV providers may like to forget 2019 as soon as possible, as a report from Leichtman Research Group found that among the largest pay-TV providers in the U.S.—which make up about 95% of the market—there was a loss of about 4,915,000 net video subscribers. That is up from the 1,585,000 subscribers lost in 2018.

Currently, the top pay-TV providers account for 86.2 million subscribers. The top seven cable companies account for 45.8 million of that number; satellite 25.4 million; telephone companies 8.3 million; and the top three publicly reporting vMVPD pay-TV services have 6.7 million subscribers.

The group of top seven cable companies is made up of Comcast, Charter, Cox, Altice, Mediacom, Cable One and Atlantic Broadband. Combined, they lost about 1.56 million video subscribers last year, representing 3.3% of video subscribers; it was 920,000 in 2018 (1.9%). Comcast saw the most losses, 732,000, but remains the top cable company by more than 5 million subscribers (21.25 million at end of 2019).

DirecTV and Dish were the satellite companies tabulated by LRG, which combined lost around 3.7 million subscribers, up from 2.36 million in 2018. DirecTV saw the majority of those losses, with a reported 3.19 million subscribers leaving the satellite company.

Telephone companies, which include Verizon Fios, AT&T U-Verse and Frontier, lost about 665,000 video subscribers, again up from 2018 (245,000).

The only group that saw an overall growth was vMVPDs, represented in LRG’s report by Hulu + Live TV, Sling TV and AT&T TV Now. Combined, the three groups added just over a million subscribers in 2019. However, that number was down from 1.94 million net adds in 2018, which represented a 50% increase at that time; 2019’s addition represented an 18% increase. AT&T TV Now was the only vMVPD to lose subscribers and is the only one that came in under a million (926,000) at the end of 2019.

Overall, 2019 saw AT&T suffer a net loss of about 4.12 million subscribers across its pay-TV services (DirecTV, AT&T U-Verse and AT&T TV Now), representing 84% of pay-TV net losses in the year. The company just launched its new AT&T TV service, however.

“The significant increase in pay-TV net losses in 2019 was both a function of consumers having more video options, and the decisions by AT&T and other providers to increasingly focus on long-term profitability in acquiring and retaining subscribers,” said Bruce Leichtman, president and principal analyst for LRG.

The full Leichtman Research Group report can be found online.  

DURHAM, N.H.—Three out of every four homes in the U.S. subscribe to a pay-TV service, per new research from Leichtman Research Group, a significant drop from the reach pay-TV had 10 years ago when it was in nearly 90% of homes.

The new study, “Pay-TV in the U.S. 2019,” reveals that in 2009, according to LRG, 87% of homes had pay-TV service. That number dropped to 84% in 2014, and now sits at 75%. Almost an equal number of homes, 74%, subscribe to some kind of SVOD service as of 2019. LRG reports that 54% of homes have some kind of combination of pay-TV and SVOD, while 21% only have pay-TV and 20% only have SVOD; 5% have neither.

“With more options for watching live and on-demand video, consumers are increasingly choosing to cobble together the services that meet the viewing and economic needs of their household,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group.

Despite the drop in the number of subscribers, the mean reported spending on pay-TV is leveling off. For those who have pay-TV services, they are averaging a bill of $109.60 per month, a 6% increase since 2016. In total, including those who do not subscribe to pay-TV, that average is about $80 per month, slightly lower than the per household spending in 2015.

Other findings from LRG include that pay-TV subscribers that bundle services from a provider has dropped from 67% in 2014 to 60%. Pay-TV is more popular among older individuals, with 83% of those 45 and older subscribing to pay-TV compared to 64% for 18-44 year olds. It also shows that the more TVs a home has the more likely they are to subscribe to pay-TV—homes with three or more TVs are pay-TV subscribers 87% of the time, 75% with two TVs and 52% with one TV.

2019 also marked the first year since 2010 that less than half (47%) of TV sets in use were connected to a pay-TV providers’ set-top box. Meanwhile, over-the-air antennas are in use at 27% of TV households, including 53% in homes that are not pay-TV subscribers.

The full “Pay-TV in the U.S. 2019” report is available on LRG’s website.

DURHAM, N.H.—Nearly three out of four U.S. households subscribe to at least one video-on-demand service, such as Netflix, Amazon Prime or Hulu, compared to 64% in 2017 and 52% in 2015, according to research released today by Leichtman Research Group (LRG).

Of the 74% of SVOD households, 69% have more than one SVOD service, an increase from 51% and 38% in 2017 and 2015, respectively, the research organization said.

“Nearly three-quarters of all U.S. households have at least one SVOD service, and one-third of all adults stream an SVOD service daily, including half of all ages 18-34,” said Bruce Leichtman, LRG president and principal analyst.

The research, which is laid out in LRG’s new “Emerging Video Services 2019” report, polled 1,116 households around the country on their use of video services. The study also found:

• 64% of all adults stream an SVOD service at least monthly, and 41% stream more than one SVOD service at least monthly;
• 33% of adults stream an SVOD service daily; 29% did in 2017, and 16% in 2015;
• 51% of those 18 to 34 years old stream an SVOD service daily, compared to 34% of those 35 to 54 years old and 15% of those 55 and older;
• 27% who subscribe to Netflix agree that their subscription is shared with others outside their household, compared to 19% with Hulu and 10% with Amazon Prime; and
• 51% of adults watch video on non-TV devices, including mobile phones, home computers, tablets and eReaders daily—up from 43% in 2017 and 31% in 2014.

“With over half of all households now getting multiple SVOD services, and new streaming services on the way, it is inevitable that the number of households having and using multiple services will continue to grow,” said Leichtman. “However, with expanded options, consumers will increasingly decide which streaming services they pay for directly and which they share with others.”

More information about the “Emerging Video Services 2019” study is available online.

DURHAM, N.H.—Pay-TV keeps taking hits in subscribers, with Leichtman Research Group finding in its latest quarterly report that about 1.53 million people dropped their pay-TV subscriptions during the second quarter of 2019. This is the fourth consecutive quarter of decline, per Leichtman, and more than a million of subscribers cutting their service from the same time period in 2018 (420,000).

Consisting of the top 14 pay-TV services in the U.S. making up about 93% of the market, which includes satellite, cable, phone and vMVPDs. Satellite companies lost about 855,000 subscribers during Q2, with DirecTV accounting for 778,000 alone in its fifth straight quarter of net losses; Dish’s losses of 79,000 resulted in its best quarter since Q2 2014.

Cable, meanwhile, had its worst quarter since Q2 2014, experiencing a net loss among the top seven companies of 455,000. Comcast took the biggest hit, but is still the top cable provider by a wide margin.

The top telephone providers lost about 100,000 video subscribers—more than double its Q2 2018 numbers—and vMVPD services even suffered a loss of 120,000 subscribers; they experienced a net add of 385,000 in Q2 2018.

In the past year, the top pay-TV providers have lost about 5,015,000 subscribers; the year prior saw a loss of 1,060,000 subscribers.

“This marked the fourth consecutive quarter of record pay-TV industry net losses,” said Bruce Leichtman, president and principal analyst for LRG. “With an increased focus on acquiring and retaining profitable subscribers, DBS services accounted for more than half of the net pay-TV losses in 2Q 2019, and 63% of the losses over the past year.”

For more information, visit leichtmanresearch.com.

DURHAM, N.H.—The traditional TV buying cycle, along with lower prices is helping to spur acceptance for 4K in the marketplace, according to a new report from the Leichtman Research Group. And although highly expensive 8K TVs are starting to hit the market, the retail outlook for TVs remains very active.

LRG’s recent study “Connected and 4K TVs 2019,” found that for the 15th consecutive year, more than 20% of adults said that they got a new TV set in their household in the past year. This pattern suggests that “TV sets are a recurring purchase item,” LRG said.

The researcher also found that, despite the proliferation of video screens on PCs, tablets and smartphones, the number of TV sets per household remains steady at 2.6, representing an estimated 320 million TV sets currently in American households.

LRG compared the move to 4K with the transition to HDTV in the mid-2000’s, estimating that, in the early years of HDTV, about half of all HDTV owners were watching HD programming from a pay-TV provider but that 25% thought they were watching HD from a pay-TV provider even though it wasn’t HD.

This lack of consumer knowledge over what constituted high definition decreased as more HDTVs appeared in American households.

“The prior confusion over HD content declined as HDTVs became more commonplace,” LRG said. “It is important to recall that after reaching 17% penetration in 2006, HDTV expanded to 69% of TV households in 2011.”

Similar confusion is taking place in the current transition to 4K, however, LRG’s study found that “59% of 4K HDTV owners strongly agree that picture quality on a 4K TV set makes everything look better even when not watching 4K content, while just 7% disagree.”

LRG says the transition to 4K is entering a similar growth stage of the product lifecycle for 4K TV with nearly half of non-4K TV owners (48%) planning to purchase a new TV in the next 12 months “very interested” in buying a 4K TV and 41% of current 4K TV owers interested in getting another 4K TV. 

DURHAM, N.C.—A new report from Leichtman Research Group indicates that the core customers of live streaming vMVPD pay-TV services—Sling TV, DirecTV Now, YouTube TV, Hulu with Live TV, etc.—fall in the age range of 18-44 years old. Per LRG, 71% of U.S. adults that have a vMVPD service are between the ages of 18-44. More than half of those, 42%, fall in the age range of 18-34.

A reported 43% of current vMVPD customers made the switch directly from a traditional pay-TV service; 25% of those with streaming services said that they still have a traditional service as well as. Meanwhile, 17% of vMVPD subscribers switched to their current service from another vMVPD, while 15% were most recently non-subscribers to any type of pay-TV service.

Other key findings from LRG’s report include:

• Overall, 16% of all 18-44 year olds subscribe to a vMVPD; that drops to 6% for those over 45;
• In that 18-34 age range, 26% are traditional pay-TV subscribers and 33% are pay-TV non-subscribers;
• 73% of vMVPD subscribers are “very satisfied” with their service; but 20% say they are very likely to switch from a vMVPD service in the next six months;
• 93% of vMVPD subscribers also have a SVOD service (Netflix, Amazon Prime, Hulu). Only 71% of traditional pay-TV subscribers, and 74% of non-subscribers also have a SVOD subscription; and
• 24% of those that do not currently have a vMVPD service are “very interested” in getting one

These statistics were based on an online survey of 6,715 households in the U.S. View LRG’s full “Internet-Delivered Pay-TV Services 2019” online.

DURHAM, N.H.—Traditional pay-TV services took another hit in 2018, according to a new report by the Leichtman Research Group. Those traditional avenues for TV—satellite, cable and telephone companies—lost about 3,515,000 subscribers in 2018, compared to 3,110,000 in 2017.

Satellite TV services took the biggest individual hit, with a reported 2,360,000 subscribers leaving last year. That was up from 1,550,000 in 2017. DirecTV lost more than twice as many subscribers in 2018 (1,236,000) than in 2017 (554,000). DBS services cumulatively lost 7.5 percent video subscribers.

The top six cable companies saw less of a difference, but still had a larger exodus of subscribers than in 2017. This year 910,000 video subscribers left the six companies, about 1.9 percent of all its video subscribers; the number was 680,000 last year.

Telephone companies with pay-TV services—AT&T U-verse and the like—actually had less subscribers exit deals year-to-year, with 245,000 cutting the cord this year versus 885,000 the previous year. In total, after losing 8.7 percent of its subscribers in 2017, Telcos saw a decrease of 2.6 percent in 2018.

The top companies covering all three of these traditional services lost 2,875,000 net video subscribers in 2018.

Despite another year of overall growth, 2018 was also a slower year for internet-delivered services, including the top reporting services Sling TV and DirecTV Now. Those two services added 640,000 subscribers in 2018, but those numbers totaled 1,600,000 in 2017.

“The pay-TV market saw net losses increase in 2018,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group. “Overall, the top pay-TV providers lost 3.1 percent of subscribers in 2018 compared to a loss of 1.6 percent in 2017. Since the industry’s peak in 1Q 2012, pay-TV subscribers for the top providers have declined about 6,000,000. This reflects a decline of about 10,000,000 subscribers for traditional services, offset by the addition of about 4,000,000 subscribers for the publicly reporting vMVPD services.”

MONTEREY, CA–Cable and satellite TV providers continue to shed subscribers as the rate of cord-cutting accelerate in the third quarter, according to several new research reports.

According to MoffettNathanson, more than 1 million viewers severed their subscriptions to cable and satellite TV services in Q3, the most ever in a quarterly earnings period. The four largest U.S. pay-TV providers--AT&T (DirecTV), Comcast, DISH and Charter lost 887,000 subscribers in the quarter, with the satellite TV providers taking the brunt of the loss.

Media Research firm Kagan released similar figures, noting that cable lost 1.1 million subscribers year-to-date so far, their worst performance at the three-quarter mark since 2014. Satellite providers lost 726,000 subscribers in Q3 and traditional telco subscriptions fell by 94,000, with Verizon alone shedding 63,000 subs alone during Q3. The current number of multichannel video program subscribers stands at 91 million, including 88.2 million residential customers, according to Kagan.

Kagan’s quarterly analysis now includes total virtual multichannel subscriptions from services such as Sling TV, DirecTV Now, Hulu with Live TV, YouTube TV and PlayStation Vue. The combined virtual platforms gained an estimated 2.1 million subs in the trailing 9 months, compared a decline of 2.8 million in the traditional segment.

Leichtman Research Group reported a loss of approximately 975,000 subscribers for the pay-TV market in Q3 compared to a pro forma loss of 410,000 in Q3 2017. Among “skinny bundles,” LRG focused on those provided by AT&T/DirecTV and DISH, noting that its Sling TV and DIRECTV NOW services added only 75,000 subscribers in Q3, compared to about 530,000 net adds in Q3 2017. This was the fewest in any quarter since their debut.

Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. noted the danger such trends mean for DBS providers in particular.

“Satellite TV services had more combined net losses in 3Q 2018 than in any previous quarter,” he said. “These net losses were largely driven by corporate strategies focused on acquiring and retaining more profitable subscribers (as well as a programming carriage issue between DISH and Univision). A related emphasis on improving the profitability of the satellite TV company’s Internet-delivered flanker brands reduced net quarterly adds in the segment, resulting in vMVPDs not helping to mitigate overall pay-TV losses to the degree they had in recent quarter

In addition to lost subscription revenues, cord-cutting is hitting pay-TV’s advertising base as well. eMarketer recently downgraded its TV ad revenue estimates for 2018, decreasing the rate of growth to just .5 percent to $71.65 billion, down from the previously estimated $72.72 billion. eMarketer predicts that TV’s share of total media ad spending in the US will drop to 34.9 percent, and is expected to fall below 30 percent by 2021.

The number of U.S. TV homes with at least one internet-connected TV device continues to swing upward, Leichtman Research Group (LRG) found in a new study.

Some 74% of those homes have at least one such device in a category that includes smart TVs, standalone streaming players, streaming adapters and sticks, and connected Blu-ray players, LRG said in the study, "Connected and 4K TVs XV," which based findings on a survey of 1,202 U.S. TV homes.

The 2018 results are up from 65% in LRG’s 2016 study, 44% in 2013, and a mere 24% in 2010.

LRG said 29% of adults in U.S. TV homes watch video on a TV via a connected device daily, up from 19% in 2016, 6% in 2013, and 1% in 2010.

Tying into a broader trend that has seen younger viewers gravitate to OTT-delivered video, that group currently over-indexes in the 18-34 age group (43%), compared to 33% who are 35-54, and 12% among those 55 years or older.

Per the study, about 29% of all TVs in U.S. homes are connected smart TVs, up from just 7% in 2014. Among homes with any connected TV device, 57% have three or more, with a mean of 3.8 devices per connected TV home.

Across all TV homes, the mean number of connected TV devices is 2.8, versus a mean of 1.7 pay TV set-top boxes per U.S. TV home

“Connected TVs, along with Netflix and other SVOD services, are among the biggest factors driving change in the video industry over the past few years,” Bruce Leichtman, president and principal analyst for LRG, said in a statement. “In a short period of time, connected devices have allowed an increasing number of consumers to easily watch SVOD and other video options on the same TV screen as traditional pay-TV and broadcast offerings."

ALEXANDRIA, VA.—Pay-TV revenue, household penetration and subscriptions in the U.S. are down and things don’t appear as if they will improve anytime soon, according to reports from three separate analysts.

A tally released this month by nScreenMedia finds that U.S. cable, satellite and telco TV services lost 3.5 million subscribers last year. Overall, 2017 proved to be the worst year ever for the traditional pay television industry, it said.

Another newly released report from Digital TV Research paints a similarly gloomy picture. According to its new North American Pay TV Forecast, the total number of U.S. pay TV subscribers dropped to 90.35 million, down 10 million from the industry’s high mark of 100.34 million in 2012. U.S. pay-TV household penetration is likewise on a downward trajectory. In 2013, 87.6 percent of households subscribed to pay TV, but by 2023 that figure is expected to decline to 66.7 percent.

[Viewer Preferences Straddle Generations]

New data from Leichtman Research Group also shows rough seas for pay-TV, but smaller subscription declines. According to the research organization, the largest U.S. pay-TV providers lost nearly 1.5 million net video subscribers last year compared with a pro forma loss of about 760,000 in 2016—a 1.6 percent subscriber decline last year compared to a 0.8 percent drop in 2016.

"The pay-TV market saw net losses increase in 2017 and the continuation of a share shift from traditional services to newer internet-delivered services," said Bruce Leichtman, president and principal analyst for Leichtman Research Group.

According to Leichtman, the number of subscribers to the top pay-TV providers in the U.S. is 92.2 million. The top six cable companies accounted for 48.1 million video subscribers; satellite TV providers have 31.5 million; the top telephone companies have 9.2 million; and the top internet-delivered pay-TV services have about 3.4 million. A Leichtman chart itemizes the number of subscribers for top cable, satellite, phone (IPTV) and internet-delivered (vMVPD) TV as of the end of Q4 2017 as well as net subscriber additions in 2017.

The declines are taking a toll on revenue. In 2015, U.S. pay-TV revenues peaked at $101.71 billion but will decline by 26 percent to $75.1 billion in 2023, according to Digital TV Research’s new forecast. The slide in cable TV revenue, which began after its 2010 peak of $54.11 billion, will continue. Revenues will reach $36.75 billion in 2023, a drop of about 33 percent. Total subscribers will also drop by about 12 million from 2010 to 2023, the forecast said.

Satellite and IPTV services will suffer declines as well, although a good part of the decline is due to some operators, such as AT&T, shifting subscribers to aligned platforms. For instance, nScreen Media reports AT&T U-verse lost 17 percent of its subscriber base, which is largely due to the effort of the company to retire the service and direct subscribers to DIRECTV and DIRECTV Now. IPTV revenues reached their zenith in 2015 at $9.6 billion; however, they are expect to decline to $4.77 billion in 2013, the forecast said. In 2014, IPTV subscriptions topped at 12 million, but are forecast to decline to 6.26 million in 2023.

[Making Over-the-Air TV Cool Again]

Satellite pay-TV revenues are projected to fall 16 percent from $39.78 billion in 2017 to $33.61 billion in 2023. The number of subscribers, which dropped 3 million last year, will decline by another 4 million between 2017 and 2023, the forecast said. Both DISH with its vMVPD Sling TV and DIRECTV Now are having an impact on these numbers.

"Satellite TV services, DIRECTV and DISH TV, had more combined net losses in 2017 than in any previous year, yet these losses were offset by gains from their internet-delivered flanker brands, DIRECTV NOW and Sling TV,” said Leichtman.

While helpful, the growth of such virtual MVPDs won’t entirely make up for the drop off in revenue and subscribers, added Simon Murray, principal analyst at Digital TV Research.

DURHAM, N.H.—The growth of internet-delivered pay-TV services in the third quarter of 2017 weren’t enough to counteract the loss of subscribers to cable, satellite and phone companies, per the report from Leichtman Research Group. With a loss of 407,230 subscribers in Q3, the top pay-TV providers, which make up for 95 percent of the market, now have 92.2 million subscribers.

The top six cable companies—Comcast, Charter, Altice, Mediacom, CableOne and an undisclosed private company—lost 289,230 subscribers, bringing its total to 48.1 million; the loss was 90,000 in Q3 2016. Satellite TV services saw a gain in Q3 2016 of about 5,000, but lost 475,000 this year; satellite subscribers now total about 32.3 million. Telephone providers saw a bounce back from 2016, losing 179,000 video subscribers in 2017 compared to 370,000 the year prior; telephone subscribers total 9.3 million.

The only service to net a positive in the third quarter was internet-delivered service, which consisted of SlingTV and DirecTV Now. After adding about 200,000 subscribers in Q3 2016, the services combined to bring in 536,000 subscribers for Q3 2017, 240,000 for SlingTV, 296,000 for DirecTV Now. With the new subscribers, these services total 2.5 million of the total pay-TV subscribers.

Bruce Leichtman, president and principal analyst for Leichtman Research Group, estimates that 155,000 more subscribers were lost in Q3 2017 than in Q3 2016.

The full report is available here.