October 6, 2021
Cord-cutting among pay-TV subscribers is no longer a niche activity. The practice of giving up the traditional cable/satellite/telecom channel bundle for over-the-top video is now expected to strip nearly $33.6 billion in annual revenue from U.S. operators through 2025, according to new data from Kagan.
The research firm contends revenue from cable, satellite and telecoms will decline from $91.1 billion in 2021 to $64.7 billion by 2025 as subscribers jettison service for alternatives such as Netflix, Amazon Prime Video, Disney+, Hulu, Peacock, Paramount+ and HBO Max, among others.
The changing viewing patterns, only slightly moderated by rising average revenue per unit, are forecast to depress sales, excluding advertising, by 45% from the 2016 peak of more than $116.9 billion.
“While all three major platforms are feeling the impact from the shift, the magnitude of the losses are expected to hit more acutely for satellite (i.e. Dish and Direct Stream) and telco (Verizon, AT&T) revenue subtotals amid waning commitments by major players and relative stability from the large cable providers such as Comcast and Charter,” Kagan wrote in a post.