TV EverywhereJust over 8 in 10 U.S. households (83 percent) subscribe to some form of pay-TV service, according to new market data from Leichtman Research Group (LRG). That’s down from 87 percent in 2010, but sill above 2005’s 81 percent, LRG highlights in a press release. Housing dynamics are contributing to cord cutting growth, with movers who do not subscribe to pay-TV increasing by 75% between 2010 and 2015., according to LRG research findings.

The total number of U.S. subscribers to pay-TV services as of end-2Q is similar to that of end-2Q 2010, but occupied housing has increased more than 4.5 million units, according to the U.S. Census Bureau. Taken together, nationwide pay-TV penetration decreased from five years ago.

Seventeen percent of U.S. households who don’t subscribe to a pay-TV service did pay for one in the past year. About 70 percent of current non pay-tv subscribers paid for a pay-TV service three or more years ago, or they never subscribed at all.

Other key findings from LRG’s Cable, DBS & Telcos: Competing for Customers 2015  include:

  • In households using a TV, 12% of home owners do not subscribe to a pay-TV service — compared to 23% of renters (renters are more likely to be non-subscribers than in any year since 2006)
  • 21% of those who moved in the past year do not currently subscribe to a pay-TV service — compared to 12% in 2010
  • 35% using one TV set at home are non-subscribers — compared 10% using two or more TVs
  • Mean reported monthly spending on pay-TV service is $99.10 — an increase of 39% since 2010
  • 63% of non-subscribers get a subscription video on-Demand (SVOD) service, and 62% have an over-the-air (OTA) TV antenna
  • In total, 5% of all households are pay-TV non-subscribers with both an SVOD service and an OTA antenna — while 4% of all households are pay-TV non-subscribers with SVOD but no OTA antenna.

“Changes in the dynamics of the pay-TV industry are not driven just by those exiting the category, but also those coming into the category,” LRG president and principal analyst Bruce Leichtman was quoted as saying.

“Historically, consumers have gone in and out of the pay-TV category, primarily for economic reasons. While the rate of those leaving is actually similar to a decade ago, those who are entering or reentering the market has decreased over time, and the industry is not keeping pace with rental housing growth.”

Join the Conversation

Leave a Reply

Your email address will not be published. Required fields are marked *

Don’t Miss Any of Our Content

What’s happening with broadband and why is it important? Find out by subscribing to Telecompetitor’s newsletter today.

You have Successfully Subscribed!