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Kagan Releases Third Quarter U.S. Multichannel Subscriber Report

For the first time, U.S. pay TV subscriber losses top symbolic 1-million threshold in third quarter

 (PRNewsfoto/S&P Global Market Intelligence)

News provided by

S&P Global Market Intelligence

Nov 16, 2017, 10:55 ET

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MONTEREY, Calif., Nov. 16, 2017 /PRNewswire/ -- Legacy multichannel customer defections accelerated in the quarter ended Sept. 30, 2017, coming in just shy of the 1.2-million mark to bring year-to-date losses to 2.9 million according to data compiled by Kagan, a group within S&P Global Market Intelligence.

The combined cable, Direct Broadcast Satellite (DBS) and telecommunications multichannel subscriptions fell to 94.9 million at the end of the period, including 91.7 million residential customers, for a 74.8% residential multichannel penetration.

Additional takeaways from Kagan's Q3 U.S. Multichannel Subscriber report:  

  • Cable operators lost approx. 801,000 total video customers. In the first nine months of 2017, total losses were up 114% over the same interval in 2016.
  • The telco platform logged its ninth consecutive quarter of video customer erosion, with losses coming in at approx. 184,000. AT&T's emphasis on DIRECTV NOW is weighing heavily on the company's legacy multichannel products, including U-verse, which accounted for 73.5% of the sector decline during the period.
  • Traditional satellite services were down an aggregate approx. 618,000 subscribers, accounting for 53% of the universe's losses.
  • Adding the top two virtual service providers (VSPs) affiliated with legacy multichannel distributors –DISH Network's Sling TV and AT&T's DIRECTV NOW – reduces the sector's calculated quarterly losses to approx. 635,000.

About S&P Global Market Intelligence

At S&P Global Market Intelligence, we know that not all information is important—some of it is vital. Accurate, deep and insightful. We integrate financial and industry data, research and news into tools that help track performance, generate alpha, identify investment ideas, understand competitive and industry dynamics, perform valuations and assess credit risk. Investment professionals, government agencies, corporations and universities globally can gain the intelligence essential to making business and financial decisions with conviction.

S&P Global Market Intelligence a division of S&P Global (NYSE: SPGI), provides essential intelligence for individuals, companies and governments to make decisions with confidence. For more information, visit www.spglobal.com/marketintelligence.

SOURCE S&P Global Market Intelligence

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