Pay-TV providers in the United States experienced a significant decline in subscribers during the first quarter of 2023, according to a recent study conducted by Leichtman Research Group.
The study, which represents approximately 96% of the market, revealed a net loss of about 2,215,000 video subscribers in Q1 2023. The figure surpasses the previous record set in Q1 2022, which reported a net loss of approximately 1,850,000 subscribers.
As of now, the top pay-TV providers in the country account for approximately 73.7 million subscribers. Among them, the seven leading cable companies have around 36.8 million video subscribers, while other traditional pay-TV services have 23.4 million subscribers. Internet-delivered pay-TV services, including an estimate for YouTube TV, have approximately 13.5 million subscribers.
Key findings from the study indicate that cable providers suffered a net loss of about 1,060,000 video subscribers in Q1 2023, compared to a loss of approximately 825,000 subscribers in the same quarter of the previous year. Other traditional pay-TV services experienced a net loss of around 760,000 subscribers in Q1 2023, compared to approximately 625,000 in Q1 2022. The top internet-delivered pay-TV services (vMVPDs) reported a net loss of about 395,000 subscribers in Q1 2023, slightly lower than the 400,000 subscribers lost in Q1 2022.
Bruce Leichtman, President and Principal Analyst for Leichtman Research Group, commented on the findings, stating: “Pay-TV net losses of about 2.2 million in Q1 2023 were more than in any previous quarter. Similar to recent quarters, the record net losses appear to be as much a function of a slowdown in new connects as an increase in disconnects.”
The study highlights the ongoing trend of declining pay-TV subscribers, signalling a shift in consumer preferences towards alternative video streaming platforms and services. The data suggests that both reduced new sign-ups and increased cancellations contributed to the significant net loss in Q1 2023.
