Monday, April 11, 2016

U.S. Linear Video Subscriptions Drop, Revenue Grows

Despite its mature status, linear video subscription revenue grew three percent to $105 billion in 2015 and will reach $107 billion for 2016, according to Convergence Consulting. But linear video subscribers continue to dwindle.

OTT video service revenue (from CBS, HBO, Hulu, Lifetime, Netflix, Noggin, PlayStation, Seeso, Showtime, Sling, Starz, Tribeca) grew 29 percent to $5.1 billion in 2015 and will hit  $6.7 billion for 2016.

If correct, OTT video now represents about five percent of network-delivered video entertainment revenue.

Linear video subscribers declined by 1.131 million, following a  2014 decline of 283,000.

In 2016, subscribers will decline by 1.112 million, Convergence Consulting predicts.

At the end of 2015 the firm estimated 24.6 million U.S. households (20.4 percent) did not have a traditional linear TV subscription, up from 22.5 million (18.8 percent of households) at the end of 2014.

Convergence Consulting estimates 26.7 million (21.9 percent of households) will have no such subscription by the end of 2016.

In 2014, 1.27 million more households abandoned linear TV (including both abandonment and new household formation without buying linear TV . In, 2015 2.1 million homes did so, while 2.08 million will do so in 2016.

source: Convergence Consulting

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