Major US multi-channel video providers lost about 25,000 subscribers in 3Q 2013

Quarterly Industry Losses Slightly Less Than 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 25,000 net video subscribers in 3Q 2013, compared to a loss of about 50,000 video subscribers in 3Q 2012.

The top multi-channel video providers account for nearly 94.5 million subscribers — with the top nine cable companies having about 49.9 million video subscribers, satellite TV companies having 34.2 million subscribers, and top telephone companies having 10.4 million subscribers.

Other key findings include:

• The top nine cable companies lost about 600,000 video subscribers in 3Q 2013 — the highest quarterly losses since 3Q 2010
  • Time Warner Cable’s 3Q 2013 losses of over 300,000 subscribers (partially the result of a programming dispute with CBS) were the highest quarterly losses ever for any multi-channel video provider
• Satellite TV providers added 174,000 subscribers in 3Q 2013 — compared to a gain of 48,000 in 3Q 2012
• The top telephone providers added 400,000 video subscribers in 3Q 2013 — compared to 317,000 net additions in 3Q 2012
  • AT&T U-verse’s net adds of 265,000 in 3Q 2013 were the company’s highest quarter since 1Q 2009, and the second highest ever
• Over the past year, multi-channel video providers lost about 80,000 subscribers, compared to a gain of about 310,000 over the prior year

“The multi-channel industry was essentially flat in the third quarter of 2013, with major providers as a whole performing slightly better than in the third quarter of 2012,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “Quarterly losses for cable providers were exacerbated by Time Warner Cable’s programming dispute with CBS, but these losses benefitted Telco and DBS providers with higher subscriber gains than a year ago.”

                              Subscribers at  Net Adds in  Net Adds in 
Multi-Channel Video Provider  End of 3Q 2013      3Q 2013      3Q 2012
----------------------------  --------------  -----------  -----------
Cable Companies
 Comcast                         21,647,000     (129,000)    (116,000)
 Time Warner                     11,607,000     (304,000)    (140,000)
 Charter                          4,345,000      (25,000)     (68,000)
 Cablevision                      2,831,000      (37,000)     (11,000)
 Suddenlink                       1,186,000       (3,000)         200
 Mediacom                           960,000      (23,000)     (18,000)
 Cable ONE                          561,119      (14,643)      (7,672)
 Other Major Private
    Cable Companies*              6,745,000      (65,000)     (55,000)
Total Top Cable                  49,882,119     (600,643)    (415,472)

Satellite TV Companies (DBS)
 DIRECTV                         20,160,000      139,000       67,000
 DISH Network                    14,049,000       35,000      (19,000)
Total Top DBS                    34,209,000      174,000       48,000

Telephone Companies
 AT&T U-verse                     5,226,000      265,000      198,000
 Verizon FiOS                     5,170,000      135,000      119,000
Total Top Phone                  10,436,000      400,000      317,000
----------------------------  --------------  -----------  -----------
Total Multi-Channel Video        94,527,119      (26,643)     (50,472)

Sources: The Companies and Leichtman Research Group, Inc.

* Includes LRG estimates for Cox and Bright House Networks
Top cable companies do not include overbuilder WOW with 691,000 subscribers
Net additions reflect pro forma results from system sales and acquisitions
Top multi-channel video providers represent approximately 94% of all subscribers
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