Some analysis of video subscriber losses in the third quarter of 2016 is coming in this week, including this study we reported on earlier from SNL Kagan. On Wednesday, Leichtman Research Group also unveiled its Q3 2016 assessment for the pay TV sector. LRG says the 11 largest providers in the United States – which represent around 95 percent of the market − shed around 45,000 more customers than in the same period in 2015.
“The top pay TV providers lost about 255,000 subscribers in this year’s third quarter − a cumulative total that was about 45,000 more than in last year’s third quarter,” Bruce Leichtman, president and principal analyst for LRG, says. “Over the past year, the top pay TV providers (including Dish’s Sling TV) lost about 755,000 subscribers compared to a loss of about 445,000 over the prior year.”
LRG approximates that the top pay TV providers have a combined 93.65 million subs. That estimate includes the top six cable operators with 48.8 million video customers, satellite TV with 34.4 million (including more than 900,000 from Dish’s internet-based Sling TV), and the top telcos with 10.5 million.
Q3 losses were something of a “bright spot” for cable operators – if you can call shedding subs a bright spot. LRG estimates that the top six cable companies lost about 90,000 video subscribers in Q3 2016, which compares to a drop of about 170,000 in Q3 2015. The sunny spin on that is the top cable op losses were the fewest in any third quarter since 2006, according to the LRG research.
LRG further notes that satellite TV providers added 207,000 subscribers in the third quarter (including gains from Sling TV), compared to a gain of 3,000 in the same quarter last year. DirecTV’s net adds of 323,000 in Q3 2016 were reportedly the most in any third quarter since 2011.
Telco TV losses slogged along, pulling overall pay TV totals way down. The top phone providers sluffed off about 375,000 video subscribers in Q3 2016 compared to a loss of about 45,000 subscribers in Q3 2015, LRG reports. The research firm notes that over the past year, AT&T lost about 1,335,000 U-verse subscribers, but added 1,207,000 on DirecTV.