Pay-TV Q2 Sub Loss Lowest Since 2014

Pay-TV operators, including cable, satellite and telecom, lost about 800,000 video subscribers in the second quarter – down from 930,000 subs in the previous-year period, according to new data from the Leichtman Research Group.

The losses were offset by ongoing gains in online TV services such as Sling TV, DirecTV Now and Spectrum TV Plus, which totaled 385,000 subs.

Leichtman found that the largest pay-TV providers in the U.S. – representing about 95% of the market – lost about 415,000 net video subs in Q2.

Specifically, satellite operators Dish Network and DirecTV shed 480,000 subs – the largest in any previous quarter.

The top six cable companies lost about 275,000 video subs compared to a loss about 190,000 subs in Q2 2017.

Telecoms lost about 45,000 video subs, compared to a loss of 270,000 subs last year.

The top pay-TV providers now account for about 91.3 million subscribers – with the top six cable companies having 47.4 million video subs, satellite TV services 30.6 million subs, the top telecoms 9.1 million subs.

Online TV services Sling TV and DirecTV Now have 4.2 million combined subs.

“This marked the fewest net losses [among pay-TV operators] in the traditionally weak second quarter since 2014,” Bruce Leichtman, president and principal analyst for Leichtman Research Group, said in a statement.

Leichtman said the rise in online TV is both a product of consumers opting for more economical services, as well as changes in providers’ strategies.

“This newer segment of the industry has helped to mitigate overall pay-TV losses, while also contributing to a share shift from traditional services,” he said.

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