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BizReport : Trends & Ideas archives : August 14, 2015

Pay TV industry lost 625,000 customers to cord-cutting in Q2 2015

Research firm SNL Kagan has reported a sharp rise in the number of cord-cutters in the U.S. driving pay TV customer losses to record highs.

by Helen Leggatt

According to SNL Kagan, the pay TV industry lost approximately 625,000 subscribers in the second quarter of 2015, the highest quarterly drop to date. Total pay TV customers dropped to 100.4 million.

According to SNL Kagan, "[t]he slide, which follows an uncharacteristically weak first quarter, points toward the likelihood of a much larger decline for full-year 2015 than the industry produced between 2010 and 2014, during what could essentially be seen as a period of general malaise".

It's not hard to see why people are deciding to cut the cord. Pay TV packages can cost an average of $87 a month while online services such as Amazon and Netflix are priced at under $10.

However, a recent survey from Nielsen, conducted in Q4 2014, found that traditional television viewing (i.e not time-shifted or DVD/Blu-Ray) is the most popular medium with 285 million users in the U.S. And, despite evidence of cord-cutting, the average American watches 4 hours and 51 minutes of live television per day. Just over half an hour of time-shifted television is watched daily.

Image via Shutterstock

Tags: pay TV, television, trends

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  • notsofastnow

    Include me in the record number of second quarter cord cutters. I now stream all content, most of it free of ads, and pay $70 less a month than I did with my Comcast bundle. What's not to like about that?



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