US Pay-TV Subscriber Base Eroding At Record Pace

According to MoffettNathanson, the U.S. pay-TV industry had its worst-ever third quarter after losing about 900,000 subscribers. "That poor result, the research firm added, left the total pay-TV industry shrinking at a record pace of -7.3%, widened from a year-ago decline of -5.9%," reports Light Reading. "It also left pay-TV penetration of occupied households (including vMVPDs) at just 54.8% -- a level last seen in 1989, five years before the debut of DirecTV." From the report: Drilling down on Q3 results, traditional pay-TV providers (cable, telco and satellite) shed 1.97 million subscribers, widened from a loss of 1.94 million in the year-ago quarter. Within that category, US cable lost 1.10 million video subs in Q3, versus a loss of -1.09 million in the year-ago period. Satellite operators (Dish Network and DirecTV) lost 667,000 subs in Q3, versus -567,000 in the year-ago quarter. Telco TV providers lost 198,000 video subs in the period, an improvement when compared to a year-ago loss of -250,000 subs. vMVPDs, meanwhile, added 1.08 million in Q3, down from a year-ago gain of about 1.34 million. Despite those gains, vMVPDs recaptured only 21.7% of traditional pay-TV's subscriber losses in the period, according to MoffettNathanson. Meanwhile, YouTube TV continues to dominate the vMVPD category. MoffettNathanson estimates that YouTube TV added about 350,000 subs in Q3, extending its total to 7 million -- representing 40% of the vMVPD sector's 18 million subscriber total. "Based on our Q3 estimate, YouTube TV has now surpassed Dish Network [6.72 million satellite TV subs at the end of Q3] to become the country's fourth largest MVPD of any kind," Moffett noted. "At the current trajectory, YouTube TV should pass DirecTV for third place in less than a year."

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