Online TV Services Added 868,000 Subs in Q2

Online TV services such as Sling TV, DirecTV Now, Philo TV and PlayStation Vue added a combined 868,000 subscribers in the second quarter, bringing the total number of virtual MVPD subs to 6.73 million, up 119% year-over-year, according to new data from Strategy Analytics.

Despite this, overall pay TV subs (cable, satellite, telecom and online TV) fell to 93.78 million, breaking a string of two consecutive quarters of growth, according to the report that examines the subscriber bases of 27 public traded and private pay TV operators, accounting for 97% of all pay TV subscriptions.

“While the entire [online TV] segment is growing, AT&T’s DirecTV Now deserves special notice given how rapidly it has grown in a fairly short period of time,” Michael Goodman, director, television and media strategies, said in a statement. “If it continues on its current growth trajectory it will overtake Sling TV as the largest vMVPD in early 2019.”

In comparison, 2Q was not particularly kind to legacy pay TV providers as they lost nearly as many subscribers (973,000) as the prior two quarters combined (-1.16 million). In the quarter, total legacy pay TV subscriptions fell to 87.05 million, down 3.6% from the previous-year period.

“Historically, pay TV in the U.S. has consisted of cable, satellite, and IPTV; however, the introduction of over-the-top pay TV services, commonly referred to as vMVPDs, necessitates a change in our thinking,” said Goodman. “What we have commonly referred to as pay TV (cable, satellite, and IPTV) should now be referred to as Legacy Pay TV, while the definition of Pay TV should include vMVPDs.”

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