US TV Subscriptions Decline

IHS Screen Digest estimates there was a decline of approximately 364,000 pay TV households in the US over the second quarter of 2011. The significant decline was largely due to escalating losses for cable operators and anaemic subscriber growth on the part of satellite operators. IPTV operators posted strong subscriber growth of 386,000, but this was not enough to offset the declines in other platforms.

IHS Screen Digest forecasts quarterly declines will continue in the next few years. Unlike some other knowledgeable observers, IHS Screen Digest does think video cord cutting, in the form of a switch to Internet delivery, is happening.

"We need to take a hard look at the facts of the situation: the economic situation for a vast population of Americans has worsened in the past four years, and customers are discontinuing video service in favor of lower priced Internet video solutions," IHS Screen Digest says.

Ultimately IHS Screen Digest believes that content owners are in the most precarious position as they attempt to continue the nearly 10 per cent annual growth in cable affiliate fees enjoyed between the years of 2000 to 2010. As video ARPU passes $86 in 2015, can we expect consumers to bear the increases?

US pay TV subscriptions decline