Global Pay-TV to Add 35 Million Subs by 2025 — Driven by Online TV

Pay-TV consumption in the United States is declining, but globally, there’s still life in the distribution channel — thanks to online TV.

New data from London-based Digital TV Research suggests there will be 35 million new pay-TV subs through 2025, with the global base reaching 1.06 billion across more than 138 countries.

Driving growth is online TV, which includes platforms such as Sling TV, Hulu with Live TV, AT&T TV Now and YouTube TV in the United States. IPTV will add 84 million subs through 2025, topping 391 million. Online TV will grow its global market share in pay-TV from 30% in 2019 to 37% in 2025.

Satellite TV, which is projected to lose another 4 million subs through 2025, will generate 20% of pay-TV subs, down from 21% in 2019.
Cable will decline 7%, accounting for 40% of all pay-TV subs by 2025 — a near 50% drop from 74% market share in 2010. There will be 430 million cable TV subs (both analog and digital) by 2025, 101 million fewer than in 2010.

“Our forecasts are based on the assumption that professional sports will restart in August following relaxations in the COVID-19 lockdown,” analyst Simon Murray said in a statement. “If this does not happen, then pay-TV will experience considerable churn.”

Hulu Missing From Chicago Cubs Spring Training Lineup

The Chicago Cubs, like many Major League Baseball teams, begin their 28-game Spring Training season Feb. 22 in Mesa, Arizona. While inclement weather is delaying the start to many games on Saturday, Disney’s online TV platform, Hulu with Live TV, won’t be around to stream the action regardless of projected rain in the forecast.

The Cubs, together with Sinclair Broadcast Group, are bowing their jointly created Marquee Sports Network, which was supposed to stream on Hulu, priced at $54.99. Subs were to get access to 148 regular season games (not being broadcast nationally), in addition to Spring Training.

In a Feb. 21 statement, the Cubs said Marquee would be available to stream on AT&T TV Now (formerly DirecTV Now) and “Hulu+Live TV in the near future.” No reason was given for the delayed launch on Hulu, which recently disclosed 2.7 million subscribers — topping Dish Network’s Sling TV.

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“The provider determines the launch date for the service,” Cubs spokesman Julian Green told the Chicago Tribune.

Per ongoing secular changes in media distribution, the Cubs for the first time in their history will not broadcast games locally over-the-air TV after 71 years.

Marquee has also bowed a branded Sports Network App, enabling fans with pay-TV contracts access to live and on-demand mobile and desktop access.

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YouTube Readying Third-Party OTT Video Platform

Google-owned YouTube is reportedly looking to borrow a page from the Amazon Channels playbook with a new platform featuring third-party subscription streaming video services.

Amazon launched Channels in 2015 featuring direct access to services such as HBO Now, Dove Channel, Acorn TV, Shudder, UMC, Showtime OTT and Starz. Amazon handles the billing and backend support for a fee or percentage of subscription revenue. Apple is doing the same type of business platform with Apple TV and Apple News.

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The Information, citing sources familiar with the situation, said the YouTube platform would enable a “wide range of subscription-streaming services,” including YouTube TV, which costs $49.99 monthly.

Google in 2015 launched ad-free video streaming subscription service YouTube Red, later bowing YouTube TV for $35 monthly. The platform recently topped two million monthly subscribers — just behind market leaders Sling TV and Hulu with Live TV.

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YouTube TV Tops 2 Million Subscribers

High-profile marketing around the World Series and Super Bowl is apparently paying off for Google’s proprietary online TV service, YouTube TV.

Google announced that the online TV service now has more than 2 million subscribers since launching in 2016. The tally puts the platform just behind Dish Network’s pioneering Sling TV with 2.68 million subs and Hulu with Live TV, reportedly at 2.7 million subs.

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YouTube (excluding $1.2 billion in ad-revenue from YouTube TV) generated more than $15 billion in advertising revenue in 2019 — up from $11 billion in 2018.

The tallies pale in comparison to overall revenue for Google parent Alphabet Inc.

“In 2019 we again delivered strong revenue growth, with revenue of $162 billion, up 18% year over year and up 20% on a constant currency basis,” CFO Ruth Porat said in a statement.

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YouTube TV Extends Free Trial Period

Google-owned online television service YouTube TV is extending its free trial period to 14 days through Jan. 15. The service with more than 1 million subscribers had offered new members a free seven-day trial period.

Launched in 2016, YouTube TV costs $49.99 monthly featuring 70 channels, including most major sports networks. The channel has been a presenting sponsor of the MLB World Series.

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YouTube TV is less expensive than Hulu with Live TV and fuboTV ($54.99) and AT&T Now ($64.99), but costs more than Sling TV ($30) and Philo TV ($20).

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Hulu Live TV Price Jumping by $10 a Month

The price for the Hulu Live TV service will increase by $10 a month, Hulu announced.

The skinny bundle will jump from $44.99 a month to $54.99 starting Dec. 18.

“The new price better reflects the substantial value of Hulu + Live TV and allows us to continue offering all of the popular live news, sports and entertainment programming included in the plan,” read a Hulu statement.

The service features more than 60-plus live TV sports, news and entertainment channels, including ESPN, Fox Sports, CNN, FX, TNT, Bravo and all major broadcast networks.

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“Price changes are never easy to stomach, and we know that many people don’t watch live television year-round, so we’ve made it easy for Hulu subscribers to switch back and forth between our plans to best suit their needs,” read the Hulu statement. “If you love college football, choose Hulu + Live TV during the season, then switch to one of Hulu’s less expensive on-demand plans when it’s over. If you enjoy most of your TV on demand but really want to watch live election news, just switch to Hulu + Live TV for a few months.”

Report: More Teens Watch YouTube Than Netflix

More teenagers in the United States are watching YouTube videos than Netflix content, according to a new survey from Wall Street investment firm Piper Jaffray.

The survey of 9,500 respondents found that 37% stream YouTube content compared to 35% who opt for Netflix.

In the previous Piper survey, 37% of respondents streamed Netflix compared to 32% for YouTube.

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“Netflix lost the leading position, but we believe YouTube’s more varied content library is a significant driver,” analysts Michael Olson and Yung Kim wrote in a note. “Specifically, we note that, while YouTube does offer movies and other scripted content for a fee, the YouTube library includes music videos, video game streaming, DIY guides, social media influencer videos.”

That YouTube has supplanted Netflix as a preferred video service among teens shouldn’t be surprising considering the Google-owned platform has long been the No. 1 video platform globally.

Already three years ago, Google said 80% of users from 18 years old streamed YouTube, with mobile use topping broadcast and cable use combined.

“By 2025, half of viewers under the age of 32 will not subscribe to a pay-TV service,” Google wrote.

Notably, Amazon disclosed disclosed YouTube TV is now the 6th most popular Fire TV app followed by PlayStation Vue, Sling TV and AT&T TV Now.

And the No. 1 app? YouTube.

Interestingly, Piper Jaffray didn’t compare YouTube TV with Netflix. Google’s move into online TV has generated about 1 million paid subscribers, about half of Hulu with Live TV’s 2 million subs, according to Bloomberg.

Netflix ended the most-recent fiscal period with more than 60 million domestic subscribers and 151 million globally.

 

Sony Downsizing PlayStation Vue?

Sony Interactive Entertainment reportedly is scaling back its involvement with local television affiliates for its branded PlayStation Vue online TV service.

Cord Cutter News, citing emails sent to affiliates from Sony, said the 4-year-old platform is looking to “deprioritize” Vue in marketing efforts across third-party websites.

Launched in 2015, the same year as Dish Network’s pioneering SlingTV, Vue has struggled to generate significant subscriber scale. The platform reportedly has about 800,000 subs — which pales in comparison to Sling’s 2.3 million.

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In fact, Vue also trails DirecTV Now, which AT&T is rebranding as “AT&T Now,” YouTube TV and Hulu with Live TV.

Vue in July upped the monthly fee of its basic plan by $5 for existing subscribers to $50 monthly, with additional programming tiers “Elite” and “Ultra” priced at $65 and $85, respectively.

A rep from Sony Interactive Entertainment wasn’t immediately available for comment.

Discovery Joins FuboTV

Online TV service FuboTV continues to transition from its original soccer roots.

The service June 18 announced a new, multiyear carriage agreement with Discovery, bringing 13 networks to the live-TV streaming service in the coming weeks.

The deal extends the previous pact between the companies that began with the former Scripps Networks Interactive (acquired by Discovery) and included carriage of their five networks, including HGTV and Food Network.

“This agreement further exemplifies the viewer affinity for our beloved brands and talent, and fuboTV’s commitment to offering high-quality, world-class content to customers,” Eric Phillips, president of affiliate distribution at Discovery, said in a statement.

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Discovery Channel, TLC, Investigation Discovery, Animal Planet, OWN: Oprah Winfrey Network and MotorTrend will be available on the streaming service’s base package, fubo Standard, joining HGTV, Food Network and Travel Channel, which are already available on the service.

At the same time, an expanded suite of Discovery networks, including Science Channel, Destination America, Discovery Family, American Heroes Channel, and Discovery Life, will be added to fuboTV’s add-on package, fubo Extra ($5.99/month for 30+ channels) joining DIY Network and Cooking Channel.

Additionally, Discovery en Español and Discovery Familia will be available on fuboTV’s Spanish-language package, fubo Latino ($24.99/month for 20 channels), and the Latino Plus add-on package ($7.99/month for 15 channels).

In addition to bringing subscribers each network’s live linear feed, the agreement also includes a library of on-demand Discovery content, bringing fuboTV’s VOD library to over 60,000 movies and TV episodes per month.

“We are excited to be adding more Discovery brands alongside their lifestyle networks, which we already carry,” said Joel Armijo, CFO, fuboTV. “These brands, including HGTV and Food Network, are among our top performing entertainment networks, and this agreement allows us to extend our partnership for years to come. We expect to be similarly successful with our new Discovery networks.”

PlayStation Vue Adds Local Fox, ABC TV Stations

Sony’s online TV service PlayStation Vue has added 16 local television stations to its channel portfolio, including Fox and ABC affiliates.

With most online TV services such as Sling TV, Fubo TV, DirecTV Now, YouTube TV, Hulu with Live TV and Spectrum TV Plus offering the same pay-TV channels 00 including premium channels HBO and Showtime, Starz and Cinemax – increasing points of differentiation involve featuring local TV stations.

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New ABC stations on Vue include: WATM ABC 23 in Altoona & State College, Pa.; KYUR Anchorage, Juneau, Fairbanks, Alaska; WTEN News 10 in Capital District, NY; WAOW ABC 9 in Central Wisconsin; WCTI ABC 12 in Coastal North Carolina; WOAY in Eastern West Virginia; KAEF ABC 23 in Eureka, Calif.; KTXS 12 in Midwest Texas; KBMY 17 in Minot-Bismarck Area; KRCR ABC 7 in Northern California; WBND ABC 57 in South Bend, Elkhart, Ind.; WTXL ABC 27 in Tallahassee, Fla. And KTKA in Topeka, Kan.

Fox stations include: WZAW in Central Wisconsin; WVFX Fox 10 in Clarksburg, WVa., and KIIT Fox 11 in North Platte, Neb.