Study: Nearly 80% of U.S. Households Subscribe to Netflix, Amazon Prime and/or Hulu

More than three-quarters (78%) of all U.S. households have a subscription-video-on-demand service from Netflix, Amazon Prime and/or Hulu, according to new consumer research from Leichtman Research Group.

That’s up from 69% in 2018, and 52% in 2015.

More than half (55%) of U.S. households now have more than one of these SVOD services, an increase from 43% in 2018 and 20% in 2015, according to Leichtman.

Usage of these SVOD services has also significantly increased in recent years, according to the study. Daily, 40% of all adults stream an SVOD service — up from 30% in 2018 and 16% in 2015. Younger adults are the most active streamers, with ages 18-44 accounting for 63% of daily SVOD users.

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The findings are based on a survey of about 1,990 households nationwide and are part of a new LRG study, Emerging Video Services 2020.

Other findings include:

  • 55% of those ages 18-44 stream an SVOD service daily — compared to 27% of ages 45+;
  • 30% with Netflix agree that their subscription is shared with others outside their household — compared to 23% with Hulu and 20% with Amazon Prime;
  • including 12 additional streaming video services, 82% of all households have at least one SVOD or DTC service and 49% have three or more services;
  • 55% of adults watch video on non-TV devices (including mobile phones, home computers, tablets, and eReaders) daily — up from 46% in 2018 and 33% in 2015; and
  • 44% of adults watch video on a mobile phone daily — up from 35% in 2018, and 20% in 2015.

“Nearly four-fifths of U.S. households now have a top SVOD service, and 40% of all adults stream an SVOD service daily, including over half of all ages 18-44,” said Bruce Leichtman, president and principal analyst for Leichtman, in a statement. “The adoption and use of these established SVOD services along with newer direct-to-consumer streaming video options have increased over the past year, spurred more recently by the impact of the coronavirus pandemic.”

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Broadband Added 1.25 Million U.S. Households in Q2; Largest Gain in Eight Years

If there’s a silver lining for pay-TV distributors hemorrhaging video subscribers, it’s high-speed Internet. Linear TV subs dropping service are doing so for alternative home entertainment channels delivered over the Web. To get that distribution requires broadband, which most pay-TV operators deliver.

New data from Leichtman Research Group found that the largest cable and telephone providers in the U.S. — representing about 96% of the market — acquired about 1.24 million net additional broadband Internet subscribers in the second quarter, ended June 30, which was up 233% from a gain of about 375,000 subs in the previous-year period.

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These top broadband providers now account for about 103.3 million subs, with top cable companies having 70.6 million broadband subs, and top wireline phone companies having 32.7 million subs.

Findings for the quarter include:

  • Overall, broadband additions in 2Q 2020 were about 870,000 more than in 2Q 2019;
  •  Broadband additions overall were the most in any quarter since 1Q 2012;
  • The top cable companies added about 1,400,000 subscribers in 2Q 2020 — compared to a net gain of about 530,000 subscribers in 2Q 2019;
  • Cable broadband net additions were the most in any quarter since 1Q 2007;
  • Charter’s 850,000 net adds in 2Q 2020 were more than for any provider in any previous quarter;
  • The top wireline phone companies had a net loss of about 155,000 subscribers in 2Q 2020 — compared to a net loss of about 160,000 subscribers in 2Q 2019.

 

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“With the continued impact of the coronavirus pandemic, there were more quarterly net broadband additions in 2Q, than in any quarter in eight years,” analyst Bruce Leichtman said in a statement. “In the first half of 2020, there were over 2.4 million net broadband additions. This is the most net adds in the first half of any year since 2008.”

Report: U.S. Pay-TV Sub Loss Increased 18% in Q2

With the migration of pay-TV subscribers to alternative (i.e. streaming) home entertainment channels ongoing, the number of U.S. linear TV subscribers dropping service increased 18% to 1.57 million in the second quarter, ended June 30, according to new data from Leichtman Research Group.

The Durham, N.H.-based firm found that while the Q2 sub loss was almost 24% less than in the 2.06 million lost in Q1, it surpassed the 1.33 million shed in the second quarter of 2019.

The top pay-TV providers account for 82.4 million subs — with the top seven cable companies having 44.7 million video subs, satellite TV services 23.3 million subs, the top telephone companies 8 million subs, and the top publicly reporting online pay-TV services generating 6.4 million subs.

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Key findings for the quarter include:

  • Satellite TV services lost about 885,000 subs in 2Q 2020 — compared with a loss of about 860,000 subs in 2Q 2019;
  • The top seven cable companies lost about 500,000 video subs in 2Q 2020 — compared with a loss of about 455,000 subs in 2Q 2019;
  • The top telecom providers lost about 160,000 video subs in 2Q 2020 — compared with a loss of about 95,000 subs in 2Q 2019;
  • The top publicly reporting online TV services (Hulu + Live TV, Sling TV, and AT&T TV Now) lost about 25,000 subs in 2Q 2020 — compared to about 80,000 net adds in 2Q 2019;
  • Charter Communication’s Spectrum platform bucked the trend, adding about 100,000 pay-TV subs.

 

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“This quarter marked the sixth consecutive quarter with over 1 million pay-TV net losses; still these losses were about a half million fewer than in 1Q 2020,” analyst Bruce Leichtman said in a statement. “The pay-TV industry as a whole continues to rapidly lose subscribers.  However, the wide disparity in performance among top providers in the quarter demonstrates the significance of individual corporate strategies.”

Pay-TV Providers Subscribers at end of 2Q 2020 Net Adds in 2Q 2020
Cable Companies
Comcast 20,367,000 (478,000)
Charter 16,168,000 94,000
Cox* 3,770,000 (50,000)
Altice 3,102,900 (34,600)
Mediacom 676,000 (17,000)
Atlantic Broadband** 311,845 (2,800)
Cable One 290,000 (13,000)
Total Top Cable 44,685,745 (501,400)
Satellite Services (DBS)
DIRECTV^ 14,290,000 (846,000)
DISH TV^^ 9,017,000 (40,000)
Total DBS 23,307,000 (886,000)
Phone Companies
Verizon FiOS 4,062,000 (83,000)
AT&T U-verse^ 3,400,000 (40,000)
Frontier*** 560,000 (34,000)
Total Top Phone 8,022,000 (157,000)
Internet-Delivered (vMVPD)
Hulu + Live TV 3,400,000 100,000
Sling TV 2,255,000 (56,000)
AT&T TV NOW 720,000 (68,000)
Total Top vMVPD 6,375,000 (24,000)
Total Top Providers 82,389,745 (1,568,400)

Research: 80% of U.S. TV Households Have at Least One Connected TV Device

New consumer research from Leichtman Research Group finds that 80% of U.S. TV households have at least one Internet-connected TV device, including connected Smart TVs, standalone streaming devices (such as Roku, Amazon Fire TV stick or set-top box, Chromecast, or Apple TV), connected video game systems, and/or connected Blu-ray Disc players. This is an increase from 74% with at least one connected TV device in 2018, 57% in 2015, and 24% in 2010.

Overall, 40% of adults in U.S. TV households watch video on a TV via a connected device daily — compared with 29% in 2018, 12% in 2015, and 1% in 2010. Older individuals use connected TV devices less often than others. Among all adults ages 55+, 18% watch video on a TV via a connected device daily — compared with 48% of ages 35-54 and 55% of ages 18-34.

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These findings are based on a survey of about 2,000 TV households in the U.S. This is LRG’s 17th annual study on TVs in the U.S.

Other findings include: Among those with any connected TV device, 64% have three or more devices — with a mean of 4.1 devices per connected TV household.

About 58% of TV households have at least one connected Smart TV — up from 47% in 2018, 22% in 2015, and 8% in 2010. Another 56% of TV households have at least one standalone streaming device — up from 46% in 2018, 23% in 2015, and 3% in 2011.

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On a daily basis, 25% of adults watch video on a TV via a standalone device, 20% via an Internet-enabled Smart TV app, 11% via a connected game system, and 3% via a connected Blu-ray player.

About 62% of 4K HDTV owners agree that the picture quality makes everything look better, even when not watching 4K content, while 6% disagree.

“The data in this study indicate that there are now nearly 400 million connected TV devices in U.S. TV households,” Bruce Leichtman, principal analyst for Leichtman Research Group, said in a statement. “This is an increase from about 250 million connected TV devices in 2016.” Leichtman said the data does not include pay-TV set-top boxes that can access the Internet.

“Along with this increase in the number of devices, the percent of adults in the U.S. using these connected devices to watch video on a TV each day has more than doubled — growing from 19% to 40% — in just the past four years,” he said.

Over Half of Adults Report Watching More TV Since the Pandemic

New consumer research from Leichtman Research Group finds that since the impact of the coronavirus pandemic, 53% of adults ages 18 and above in U.S. TV households say they now spend more time watching TV per day, while 16% say they watch less.

There are no significant differences by age, income, or gender of those agreeing that they watch more TV per day, nor is there a significant difference between SVOD and non-SVOD households. However, 56% of pay-TV subs say they now spend more time watching TV per day, compared to 45% of non-subscribers.

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This data is based on an online survey of about 1,200 TV households in the U.S. conducted in May.

Other survey findings include that 62% of pay-TV premium subs, 62% of pay-TV DVR subs, and 59% of pay-TV on-demand users say they spend more time watching TV per day. Another 43% of connected TV users say they use connected TV devices more often, while 20% say they use connected devices less often.

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The study found that 52% of connected TV users with annual household incomes above $75,000 say they use connected TV devices more often, compared with 42% with household incomes of $30,000 to $75,000, and 28% with household incomes under $30,000.

Another 45% of connected TV users ages 18-54 say they use connected TV devices more often, compared with 31% of ages 55 and older. Still 39% say they are more satisfied with their streaming video services, while 18% say they aren’t more satisfied. Indeed, 33% say they  are more satisfied with their pay-TV service, while 16% say they aren’t; 36% say they are more satisfied with their home Internet service, while 19% disagree.

“Reported increases in TV viewing since the coronavirus pandemic began are consistent across demographic categories, while perceived increases in connected TV usage are more prevalent in higher income households and among younger adults,” analyst Bruce Leichtman said in a statement. “Usage growth has played a role in boosting consumers’ positive perceptions of their streaming video, pay-TV and broadband services.”

Pay-TV Lost Record 2 Million Subs in Q1

Another financial quarter, another 90 days of pain for the pay-TV market. The largest pay-TV providers in the U.S. — representing about 95% of the market — lost more than 2 million video subscribers in the quarter ended March 31, compared with a net loss of about 1 million subs in the same period last year, according to new data from Leichtman Research Group.

The top pay-TV providers account for 83.9 million subs — with the top seven cable companies having 45.2 million video subs, satellite TV services 24.1 million subs, the telephone companies 8.2 million subs, and Internet-delivered pay-TV services with 6.4 million subs.

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Satellite TV services lost about 1 million subs compared to a loss of about 810,000 subs last year. The top seven cable companies lost about 595,000 video subs compared 335,000 subs.

The top telecoms lost about 125,000 video subs compared to a loss of about 105,000 subs in Q1 2019. The top online TV services (Hulu + Live TV, Sling TV, and AT&T TV Now) lost about 320,000 subs compared to about 225,000 net adds in 1Q 2019

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“The record net losses were partly related to the impact of the coronavirus, but do not solely reflect consumers’ dropping services,” analyst Bruce Leichtman said in a statement. “Several providers cited a decrease in connects as a key component of net losses in the quarter, rather than an increase in disconnects.”

Pay-TV’s Silver Linings Playbook: Broadband

With pay-TV distributors continuing to hemorrhage subscribers by the boatload, the growing void is being supplanted by a burgeoning new market: high-speed Internet — a prerequisite to over-the-top video consumption.

The largest cable and telephone providers in the U.S. — representing about 96% of the market — added more than 1.16 million broadband Internet subscribers in the first quarter, ended March 31. That’s up from a gain of about 955,000 subs in previous-year period, according to new data from Leichtman Research Group.

Broadband additions in the quarter were 122% of those in Q1 2019 — the most in any quarter since Q1 2015. Broadband providers now account for about 102.4 million subscribers, with cable distributors accounting for 69.2 million broadband subs, followed by telecoms with 33.2 million subs.

Over the past year, there were about 2.75 million broadband additions — compared with about 2.63 million net broadband adds over the prior year

The top cable companies added about 1.23 million broadband subs in the quarter — 132% of the net adds for the top cable companies in Q1 2019. Cable broadband net additions were the most in any quarter since Q1 2007.

Telecom companies had a net loss of about 65,000 broadband subs in the quarter, compared with a net gain of about 20,000 subs in Q1 2019.

“With the onset of the coronavirus pandemic, there were more quarterly net broadband additions in Q1 than in any quarter in five years,” Bruce Leichtman, principal analyst for Leichtman Research Group, said in a statement. “Top cable companies performed particularly well, having the most net additions for cable broadband services in any quarter in 13 years.”

Research: 85% of U.S. Homes Get Internet Service

New consumer research from Leichtman Research Group found that 85% of U.S. households get an Internet service at home, compared with 84% in 2014 and 80% in 2009.

Broadband accounts for 96% of households with an Internet service at home, and 82% of all households get a broadband Internet service — an increase from 79% in 2014 and 71% in 2009.

In addition, 81% of adults access the Internet on a smartphone (and an additional 1% access the Internet on another type of mobile phone), up from 63% in 2014. Overall, 75% of households now get Internet service both at home and on a mobile phone, an increase from 59% in 2014.

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“This year’s study demonstrates a growing reliance on broadband Internet services in the home, with an increase in the time spent online at home, including the frequency of watching Internet-delivered video,” analyst Bruce Leichtman said in a statement. “It is most common for home Internet service to be complemented by Internet service on a mobile phone. Three-quarters of households now get Internet service both at home and on a mobile phone, while the segment opting to solely access the Internet on a mobile phone has plateaued.”

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These findings are based on a telephone survey of 1,121 households from throughout the United States. This is LRG’s seventeenth annual study on this topic.

Other related findings include:

  • 10% of households only get Internet service at home – compared to 25% in 2014.
  • 50% not online at home access the Internet on a mobile phone (and an additional 2% access the Internet on another type of mobile phone), representing 8% overall.
  • 86% of households use at least one laptop or desktop computer — 93% of this group get an Internet service at home.
  • 54% of those not online at home do not use a laptop or desktop at home
  • 50% with an Internet service at home watch video online daily — compared with 29% in 2014, and 16% in 2009.

 

Among adults with an Internet service at home, the mean time spent online at home is 3.7 hours per day — up from 2.8 hours per day in 2014, and 2.2 hours per day in 2009.

Major Pay-TV Providers Lost More Than 1.7 Million Subs in Q3 2019

The nation’s largest pay-TV providers representing about 93% of the market lost about 1.74 million combined video subscribers in the most-recent fiscal period, compared with a net loss of about 975,000 subs in the previous-year period, according to new data from Leichtman Research Group.

Pay-TV now accounts for about 84.8 million subs — with cable companies having 46.1 million video subs, satellite TV 26.3 million, telecom 8.6 million, and online TV services 3.8 million.

Satellite TV lost about 1.14 million subs in the third quarter, compared with a net loss of about 725,000 subs in Q3 2018. DirecTV had record net losses for the sixth consecutive quarter, while Dish TV had fewer net losses than in any quarter since Q3 2014.

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The top cable companies lost about 410,000 video subs, compared with a loss of about 245,000 subscribers in Q3 2018. Top telephone providers lost about 210,000 video subs, compared with a loss of about 80,000 subs last year.

Online TV services Sling TV and AT&T TV Now added about 20,000 subs, compared with about 75,000 net adds last year.

“This marked the fifth consecutive quarter of record pay-TV industry net losses,” Bruce Leichtman, principal analyst for Leichtman Research Group, said in a statement. “AT&T, the leading pay-TV provider in the U.S., accounted for 79% of the net losses in the quarter compared to 30% of net losses in 3Q 2018. This change is largely the result of AT&T’s strategic decision to increasingly focus on retaining and acquiring more profitable subscribers.”

Comcast 21,403,000 (down 238,000)
Charter 16,245,000 (75,000)
Cox 3,900,000 (40,000)
Altice 3,223,400 (31,900)
Mediacom 729,000 (18,000)
Atlantic Broadband 312,555 (added 5,294)
Cable ONE 298,063 (10,430)
Total Top Cable 46,111,018 (408,036)

Survey: TV Households Subscribing to Pay-TV Declines Further

About 75% of TV households in the United States subscribe to pay-TV service (cable, satellite, telecom or online TV). That’s down from 84% five years ago, according to new data from Leichtman Research Group.

Spending on pay-TV services among subscribers is $109.60 per month, an increase of about 6% since 2016. Including non-subscribers, mean spending on pay-TV across all households is about $80 per month, a figure that is slightly lower than the per-household spending in 2015.

These findings are based on a telephone survey of 1,115 domestic households and part of LRG’s seventeenth annual study of pay-TV.

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Other findings include 60% of pay-TV subs have a bundle of services from a provider, compared to 67% in 2014; 83% of adults ages 4-plus have a pay-TV service, compared to 64% of ages 18-44; 87% of households with three or more TVs have a pay-TV service, compared to 75% with two TVs, and 52% with one TV.

The report found 47% of all TV sets in use have a pay-TV providers’ set-top box, marking the first year since 2010 that set-tops have been connected to less than half of all TVs; 27% of TV households have an over-the-air TV antenna, including 53% among pay-TV non-subscribers.

Another 54% of TV households have both a pay-TV service and an SVOD service, 21% only have a pay-TV service, 20% only have an SVOD service, and about 5% have neither pay-TV nor SVOD.

“Three-quarters of households that use a TV currently subscribe to a pay-TV service. This is similar to the total receiving an SVOD service,” Bruce Leichtman, principal analyst for Leichtman Research Group, said in a statement. “With more options for watching live and on-demand video, consumers are increasingly choosing to cobble together the services that meet the viewing and economic needs of their household.”