Advanced Television

Analysis: US pay-TV to take $33bn cord-cutting hit

October 7, 2021

Video cord-cutting is expected to strip nearly $33.6 billion (€29.6bn) in annual revenue from traditional US multichannel services in the five-year outlook, according to analysis from Kagan.

The impact of the migration of consumers from big subscription services, according to Kagan’s latest forecast for cable, direct broadcast satellite and telco multichannel revenue, is charting a course for sales to dip from $91.1 billion in 2021 to $64.7 billion by 2025.

Changing viewing patterns, only slightly moderated by rising average revenue per unit, are forecast to depress sales excluding advertising by 45 per cent from the estimated 2016 annual peak of more than $116.9 billion.

While all three major platforms are feeling the impact from the shift, the magnitude of the losses are expected to hit more acutely for DBS and telco revenue subtotals amid waning commitments by major players and relative stability from the large cable providers.

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