U.S. Linear Video Subscription Business Continues "Slow Leak"
Like a slow leak from a tire, U.S. linear video providers as a whole lost about two-tenths of one percent of the subscriber base, in the third quarter of 2014, according to Leichtman Research Group.
Cable TV companies lost about 439,000 net customers. Satellite providers lost 40,000 net customers, while AT&T and Verizon Communications gained 330,000 net customers. In other words, the market shrank, while market share shifted from cable and satellite to telcos.
The overall market shrinkage is quite small, but nevertheless represents the greatest net losses of any previous third quarter, with the satellite segment getting hit the hardest, according to Leichtman Research Group.
In fact, the top nine cable companies performed better, year over year. The cable companies lost about 440,000 video subscribers in the third quarter of 2014, compared to a loss of about 600,000 subscribers in the third quarter of 2013.
Satellite TV providers lost 40,000 subscribers in the third quarter, compared to a net gain of 174,000 subscribers in the third quarter of 2013.
The top telephone providers added 330,000 net video subscribers, down from 400,000 net additions in the same quarter of 2013.
End of 3Q 2014
Net Adds in
Other Cable Companies
Total Top Cable
Satellite TV Companies
Total Top Phone
Total Top Pay-TV Providers
Source: Leichtman Research Group, Inc.