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Multichannel sectors lost 1.2 million video subscribers in Q3 2018

Kagan's third quarter 2018 U.S. multichannel subscription report shows virtual platform gains failing to offset traditional losses


News provided by

S&P Global Market Intelligence

Nov 13, 2018, 08:00 ET

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MONTEREY, Calif., Nov. 13, 2018 /PRNewswire/ -- Third-quarter results for U.S. multichannel video subscriptions cut short a brief wave of optimism for the sector, according to Kagan, a media research group within S&P Global Market Intelligence.  Accelerating losses from satellite providers and weakening net adds from Sling TV, DirecTV Now and other virtual multichannel alternatives drove the overall decline.

Combined, the cable, direct broadcast satellite (DBS) and telco multichannel sectors lost 1.2 million video subscribers in the three-month period ended Sept. 30, 2018, ending the quarter at 91.0 million, including 88.2 million residential customers.

Kagan's quarterly analysis now includes total virtual multichannel subscriptions from services such as Sling TV, DirecTV Now, Hulu with Live TV, YouTube TV and PlayStation Vue. The combined virtual platforms gained an estimated 2.1 million subs in the trailing 9 months, compared a decline of 2.8 million in the traditional segment.

Additional takeaways from Kagan's 3rd-quarter U.S. Multichannel Subscription report:  

  • The residential penetration rate stood at 76.2% as of Sept. 30 when including traditional multichannel and the estimated virtual multichannel universe.
  • DBS had its worst quarter on record with a loss of 726,000 subscribers.
  • Cable operators lost nearly 1.1 million subscribers year-to-date as of Sept. 30, their worst performance at the three-quarter mark since 2014.
  • Traditional telco subscriptions fell by 94,000. By itself, Verizon shed a net 63,000 subs.

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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