Major U.S. pay-TV providers lost 1.74 million subscribers in 3Q 2019

Major Pay-TV Providers Lost About 1,740,000 Subscribers in 3Q 2019

DURHAM, NH — Leichtman Research Group, Inc. (LRG) found that the largest pay-TV providers in the U.S. – representing about 93% of the market – lost about 1,740,000 net video subscribers in 3Q 2019, compared to a pro forma net loss of about 975,000 subscribers in 3Q 2018.

The top pay-TV providers now account for about 84.8 million subscribers – with the top seven cable companies having 46.1 million video subscribers, satellite TV services 26.3 million subscribers, the top telephone companies 8.6 million subscribers, and the top publicly reporting Internet-delivered (vMVPD) pay-TV services 3.8 million subscribers.

Key findings for the quarter include:

• Satellite TV services lost about 1,140,000 subscribers in 3Q 2019 – compared to a net loss of about 725,000 subscribers in 3Q 2018
• DIRECTV had record net losses for the sixth consecutive quarter, while DISH TV had fewer net losses than in any quarter since 3Q 2014
• The top seven cable companies lost about 410,000 video subscribers in 3Q 2019 – compared to a loss of about 245,000 subscribers in 3Q 2018
• The top telephone providers lost about 210,000 video subscribers in 3Q 2019 – compared to a loss of about 80,000 subscribers in 3Q 2018
• Internet-delivered (vMVPD) services, Sling TV and AT&T NOW, added about 20,000 subscribers in 3Q 2019 – compared to about 75,000 net adds in 3Q 2018
• AT&T had a net loss of about 1,370,000 subscribers across its three pay-TV services (DIRECTV, AT&T U-verse, and AT&T NOW) in 3Q 2019 – compared to a net loss of about 295,000 subscribers in 3Q 2018

“The top pay-TV providers had a net loss of about 1,740,000 subscribers in 3Q 2019. This marked the fifth consecutive quarter of record pay-TV industry net losses,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “AT&T, the leading pay-TV provider in the U.S., accounted for 79% of the net losses in the quarter compared to 30% of net losses in 3Q 2018. This change is largely the result of AT&T’s strategic decision to increasingly focus on retaining and acquiring more profitable subscribers.”

                                  Subscribers at     Net Adds
Pay-TV Providers                  End of 3Q 2019   in 3Q 2019
----------------                  --------------  -----------
Cable Companies
 Comcast                              21,403,000    (238,000)
 Charter                              16,245,000     (75,000)
 Cox*                                  3,900,000     (40,000)
 Altice                                3,223,400     (31,900)
 Mediacom                                729,000     (18,000)
 Atlantic Broadband                      312,555        5,294
 Cable ONE                               298,063     (10,430)
Total Top Cable                       46,111,018    (408,036)

Satellite Services (DBS)
 DIRECTV^                             16,828,000  (1,073,000)
 DISH TV                               9,494,000     (66,000)
Total DBS                             26,322,000  (1,139,000)

Phone Companies
 Verizon FiOS                          4,280,000     (66,000)
 AT&T U-verse^                         3,600,000    (104,000)
 Frontier                                698,000     (40,000)
Total Top Phone                        8,578,000    (210,000)

Internet-Delivered (vMVPD)
 Sling TV                              2,686,000      214,000
 AT&T NOW^^                            1,145,000    (195,000)
Total Top vMVPD                        3,831,000       19,000

Total Top Providers                   84,842,018  (1,738,036)

Sources: The Companies and Leichtman Research Group, Inc.
* LRG estimate
** Altice adjusted subscriber totals for quarters prior to 3Q 2019
^ AT&T combines totals for DIRECTV and U-verse into “Premium TV” – separate results are LRG estimates
^^ The DIRECTV NOW brand name was changed to AT&T NOW in 3Q 2019

Net additions reflect pro forma results from system sales and acquisitions, reporting adjustments, and the addition of new providers to the list – therefore, comparing totals in this release to prior releases will not produce accurate findings