U.S. Pay-TV Subscriptions Fall to Lowest Levels Since 1992

Speaking of the demise of regional sports networks, here’s Todd Spangler reporting for Variety:

As streaming video continues its ascendancy, cable, satellite and internet TV providers in the U.S. turned in their worst subscriber losses to date in the first quarter of 2023 — collectively shedding 2.3 million customers in the period, according to analyst estimates. [...] With the Q1 decline, total pay-TV penetration of occupied U.S. households (including for internet services like YouTube TV and Hulu) dropped to 58.5% — its lowest point since 1992, two years before DirecTV launched as a new rival to cable TV, according to Moffett’s calculations. [...]

Google’s YouTube TV was the only provider tracked by MoffettNathanson that picked up subs in Q1, adding an estimated 300,000 subscribers in the period (to reach about 6.3 million) and netting 1.4 million subscribers over the past year. [...]

Pay TV is suffering from what Moffett calls “the impoverishment cycle,” in which higher sports-broadcast fees have driven retail prices higher — thereby fueling cord-cutting and forcing distributors to increase prices to compensate. Even ESPN, one-time stalwart of the traditional ecosystem, has conceded that there will be a day when a la carte streaming is a viable option, Moffett noted.

It’ll be interesting to see how much YouTube TV growth is juiced by NFL Sunday Ticket later this year.

★ Wednesday, 31 May 2023