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.—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.”

As the TV business realigns itself around streaming services, traditional pay-TV services continue to bleed subscribers, according to the most recent quarterly results from Leichtman Research Group.

In its latest report, LRG reported that the largest pay-TV providers in the U.S.—representing about 96% of the market—lost about 1,730,000 net video subscribers in 2Q 2023, compared to a pro forma net loss of about 1,725,000 in 2Q 2022. 

The top pay-TV providers account for about 71.9 million subscribers—with the top seven cable companies having 35.9 million video subscribers, other traditional pay-TV services having about 22.7 million subscribers, and the top Internet-delivered (vMVPD) pay-TV services having about 13.4 million subscribers, according to LRG.

Top cable providers had a net loss of about 925,000 video subscribers in 2Q 2023—compared to a loss of about 950,000 subscribers in 2Q 2022, while other traditional pay-TV services had a net loss of about 690,000 subscribers in 2Q 2023—compared to a loss of about 710,000 subscribers in 2Q 2022, LRG said. Top vMVPDs (including an estimate for YouTube TV) had a net loss of about 115,000 subscribers in 2Q 2023—compared to a loss of about 65,000 subscribers in 2Q 2022.

“Pay-TV net losses of about 1.73 million in 2Q 2023 were similar to the losses in last year’s second quarter,” 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 5,360,000 subscribers, compared to a net loss of about 4,235,000 over the prior year.”

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, 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 consumer research from Leichtman Research Group, Inc. (LRG) found that 90% of U.S. households get an internet service at home, compared to 84% in 2017, and 74% in 2007.  

Broadband accounts for 99% of households with an internet service at home, and 89% of all households get a broadband internet service – an increase from 82% in 2017, and 53% in 2007, the researchers reported. 

“The percentage of households getting an internet service at home, including high-speed broadband, is higher than in any previous year,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “Computer usage and knowledge remain the foundation for internet services in the home. Among those that do not get an Internet service at home, 58% also do not use a computer at home.”

This study also found that 90% of households use a laptop or desktop computer, an increase from 85% in 2017. Of those that use a laptop or desktop computer at home, 96% have an internet service at home.

People who do not use a laptop or desktop computer at home account for 58% of those who do not get an internet service at home. Older people also accounted for a large share of those who do not have home internet service. 

Other key findings from the new study include: 

• Individuals aged 65+ account for 34% of those that do not get an internet service at home
• 56% of broadband subscribers are very satisfied (8-10 on a 1-10 scale) with their internet service at home, while 6% are not satisfied (1-3). 
• 44% of broadband subscribers do not know the download speed of their service – compared to 60% in 2017
• 61% reporting internet speeds of >100 Mbps are very satisfied with their service, compared to 41% with speeds <50 Mbps, and 57% that do not know their speed
• 40% of broadband households get a bundle of services from a single provider – compared to 64% in 2017, and 78% in 2012
• 59% of adults with an internet service at home watch video online daily – compared to 59% in 2020, 43% in 2017, and 17% in 2012

These findings are based on a survey of 1,910 households from throughout the United States and are part of a new LRG study, Broadband Internet in the U.S. 2022.  This is LRG’s twentieth annual study on this topic.

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 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, 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

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, N.H.—The largest pay-TV operators in the U.S. continued to lose video subscribers in the first quarter of this year, with MVPDs representing about 95% of the market reporting net sub losses around 1,895,000 video subscribers in Q1 2021, according to the Leichtman Research Group Inc.

The losses were similar to declines seen in early 2020, when pay-TV operators  lost 1,955,000 subs in Q1 2020. 

With the losses, the largest U.S. pay-TV video subscribers now have about 78.7 million subs. This includes the top seven cable companies with 43.1 million video subscribers, other traditional pay-TV services like Dish, Verizon and AT&T with 28.9 million subscribers, and the top publicly reporting internet-delivered (vMVPD) pay-TV services like Hulu and Sling with 6.7 million subscribers. 

“Pay-TV net losses of about 1.9 million in Q1 2021 were similar to the net losses in Q1 2020,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group (LRG).  “Over the past year, top pay-TV providers had a net loss of about 4,790,000 subscribers, compared to a loss of about 5,125,000 over the prior year.”

Among the different sectors, cable video customer declines accelerated slightly to a net loss of about 775,000 video subscribers in Q1 2021, up from about 595,000 subscribers in Q1 2020. The Q1 2021 losses among the top cable operators were more than any previous quarter, LRG reported. 

Virtual MVPDs also continued to struggle, with a net loss of 255,000 subs in Q1 2021, up slightly from 210,000 a year ago. 

AT&T Premium TV, which includes DirecTV, U-verse and AT&T TV, once again saw the largest losses of any operator, with a drop of 620,000 video subs in the quarter, followed by Comcast, with 491,000 fewer subs in Q1 2020. 

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.—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.—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.—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. 

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."

DURHAM, N.H.—A new data analysis from Leichtman Research Group shows that the largest U.S. pay TV providers lost about 795,000 net video customers in 2016, compared to a pro forma loss of around 445,000 subscribers in 2015. Cable remains the healthiest, however, losing its fewest numbers of subscribers since 2006 and topping satellite and telco TV providers with a total of 48.6 million video subscription.

Read the full story on TVT’s sister publication Multichannel News.