Millions of consumers are doing away with pay-TV providers, likely due to the increasing success of less costly subscription services such as Hulu and Netflix, where basic plans start at under $10.
According to Leichtman Research Group, Inc. (LRG), which specializes in research and analysis to better understand current market industries, the top pay-TV providers in the U.S., such as Comcast, lost 3.1 percent of subscribers in 2018 compared to a 1.6 percent loss in 2017.
Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc., said in a statement, “Since the industry’s peak in 1Q 2012, pay-TV subscribers for the top providers have declined by about 6,000,000. This reflects a decline of about 10,000,000 subscribers for traditional services, offset by the addition of about 4,000,000 subscribers for the publicly reporting vMVPD services.” Internet-delivered services (vMVPD) include Sling TV and DirecTV Now.
Satellite TV services lost about 2,360,000 subscribers in 2018, compared to a loss of about 1,550,000 subscribers in 2017.
Forbes reports that in addition to having the option of cheaper alternatives to watch traditional television and original programs, the significance of keeping up with a show each week is just not as prominent as it used to be, writing, “TV is no longer time-sensitive; people complain of spoilers years after a show’s series finale aired on broadcast or cable. Viewers are content to catch buzzy programs long after their friends watched them.”