U.S. virtual multichannel projected to top 15 million subscribersFriday, June 22nd, 2018
Virtual multichannel projected to top 15 million subscribers
- Pressure is on for traditional services with skinny bundles, says Kagan U.S. Multichannel Forecast
MONTEREY, Calif. — The increasing popularity of virtual multichannel services along with the staying power of traditional, big-subscription packages are still expected to account for more than 70% of households through 2022, according to the latest forecast from Kagan, a media research group within S&P Global Market Intelligence. However, cord cutting is projected to reduce the overall number of households with a subscription to live linear channels in the near-term outlook.
Consumer appetites for traditional multichannel packages are waning, driving expectations for a contraction in the number of households in the U.S. with a classic cable, telco or satellite video offering. While skinny bundles from so-called virtual multichannel platforms are tapping into the demand to downsize the traditional “cable” bill, growth in self-aggregating, online-only households, as well as homes that rely on antennas for over-the-air (OTA) reception, are expected to pressure take rates.
Key takeaways from Kagan’s latest Multichannel household forecast through 2022:
- Traditional residential multichannel households, excluding commercial and dual-subscription households, projected to decrease by 14.3 million to 75.4 million.
- Virtual Multichannel households projected to increase by 10.6 million to 15.3 million.
- Combined traditional and virtual multichannel households projected to decrease by 3.7 million to 90.4 million.
- Online Video Only households projected to increase by 6 million to 18.2 million.
- Over-the-air households, excluding antenna-equipped multichannel subs, projected to increase 3.1 million to 19.1 million.
To access to the full report, please reach out to [email protected]
Links: S&P Global