Major US multichannel video providers lost about 325,000 subscribers in Q2 2012

Quarterly Industry Losses Nearly Identical to a Year Ago

DURHAM, NH — Leichtman Research Group, Inc. (LRG) found that the thirteen largest multi-channel video providers in the US — representing about 94% of the market — lost about 325,000 net additional video subscribers in Q2 2012. Quarterly net multi-channel video losses in Q2 2012 were only about 1,500 more than in Q2 2011.

The top multi-channel video providers account for nearly 94.7 million subscribers — with the top nine cable companies having about 52.1 million video subscribers, satellite TV companies having nearly 34 million subscribers, and top telephone companies having 8.6 million subscribers.

Other key findings include:

• The top nine cable companies lost about 540,000 video subscribers in Q2 2012 — compared to a loss of about 600,000 subscribers in Q2 2011
• The top telephone providers added 275,000 video subscribers in Q2 2012 — compared to 386,000 net additions in Q2 2011
  • Telco video net adds in Q2 2012 were the fewest since Q3 2007
• Satellite TV providers lost 62,000 subscribers in Q2 2012 — compared to a loss of 109,000 in Q2 2011
  • DIRECTV lost 52,000 subscribers in Q2 2012 — this was DIRECTV’s first quarterly subscriber loss ever

“While reports of multi-channel video industry losses in the second quarter of 2012 have rekindled pronouncements of cord-cutting impacting the industry, the reality is that industry-wide losses in the traditionally weak quarter were nearly identical to losses in last year’s second quarter,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “Over the past year, multi-channel video providers added about 375,000 subscribers, compared to a gain of about 210,000 over the prior year.”

Multi-channel           Subscribers at    Net Adds    Net Adds
Video Provider          End of Q2 2012  in Q2 2012  in Q2 2011
--------------          --------------  ----------  ----------
Cable Companies
 Comcast                    22,118,000   (176,000)   (238,000)
 Time Warner^               12,484,000   (169,000)   (141,600)
 Charter                     4,269,000    (72,000)    (83,000)
 Cablevision                 3,257,000           0    (23,000)
 Suddenlink                  1,230,100    (20,100)    (24,400)
 Mediacom                    1,037,000    (22,000)    (36,000)
 Cable ONE                     612,729     (9,610)    (10,403)
 Other Major Private
  Cable Companies*           7,060,000    (70,000)    (45,000)
Total Top Cable             52,067,829   (538,710)   (601,403)

Satellite TV Companies (DBS)
 DIRECTV                    19,914,000    (52,000)      26,000
 Dish Network               14,061,000    (10,000)   (135,000)
Total Top DBS               33,975,000    (62,000)   (109,000)

Telephone Companies
 Verizon FIOS                4,473,000     120,000     184,000
 AT&T U-verse                4,146,000     155,000     202,000
Total Top Phone              8,619,000     275,000     386,000

Total Multi-channel Video   94,661,829   (325,710)   (324,403)

Sources: The Companies and Leichtman Research Group, Inc.
* Includes LRG estimates for Cox and Bright House Networks
^ Total includes estimates for Time Warner Cable’s acquisition of Insight
Net additions reflect pro forma results from system sales and acquisitions
Top multi-channel video providers represent approximately 94% of all subscribers
Top cable companies do not include WOW’s acquisition of Knology completed in July
Company subscriber counts may not solely represent residential households
Note that LRG consumer research finds that about 1% of households subscribe to both cable and DBS