Two-thirds (66%) of TV households in the US subscribe to some form of live pay-TV (via cable, satellite, telco, or internet-delivered vMVPD) service.
This, according to the findings of a new report by the Leichtman Research Group (LRG), is down from 79% in 2017, 88% in 2012, and 85% in 2007.
LRG adds that subscribers to pay-TV services break down into three similar-sized groups based on their prior pay-TV subscription. About 31% of non-subscribers last had a pay-TV service within the past three years, 35% last had a pay-TV service over three years ago, and 34% never had a pay-TV service. Among those that never had a pay-TV service, 52% are ages 18-34, compared to 27% of former pay-TV subscribers.
Other findings of the report, based on a survey of 1,850 households from throughout the US and the LRG’s 20th annual study on pay-TV in the US, include:
73% of adults ages 45+ have a pay-TV service – compared to 57% of ages 18-44
46% of those that moved in the past year do not currently have a pay-TV service – a higher level than in previous years
73% of households with three or more TVs have a pay-TV service – compared to 65% with two TVs, and 52% with one TV
The mean annual household income of pay-TV subscribers is 11% higher than the mean income of non-subscribers
13% of pay-TV subscribers are likely to switch from their provider in the next six months – compared to 14% in 2020, and 13% in 2017
Commenting on the findings, Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc, said: “Two-thirds of US TV households now get a live pay-TV service, a significant decrease from 79% five years ago.
“The decline in pay-TV subscribers is not solely a function of those disconnecting services, but is also related to a slowdown in those entering or re-entering the category. Overall, about 10.5% of TV households last subscribed to a pay-TV service in the past three years, 12% last subscribed over three years ago, and 11.5% never subscribed”.
