The 13 largest subscription video providers in the United States, representing about 94 percent of the market, lost about 345,000 net video subscribers in the second quarter of 2013. In the second quarter of 2012 and in the second quarter of 2011, the industry lost about 325,000 subscribers, according to Leichtman Research Group.
Those 13 cable TV, satellite TV and telco TV companies represent 94.6 million subscribers.
Cable TV companies having about 50.5 million video subscribers, satellite TV companies have 34 million subscribers, and the telephone companies have more than 10 million subscribers. That implies the cable TV industry has 53 percent market share, satellite TV firms have 36 percent share, while telcos have 11 percent market share.
Some will note those trends and conclude that disruption of the TV business is coming soon.
The predictable changes we now expect to see are small market share gains by telcos, every quarter, at the expense of cable TV providers, with satellite provider share roughly stable. But the changes represent fractions of a percent of the installed base. That was the story in the second quarter of 2013, according to IHS. AT&T U-verse and Verizon FiOS (with some small additions by independent telcos) added a net 398,000 video accounts during the second quarter, up from 304,000 net adds in the second quarter of 2012.
The U.S. video subscription business as while lost a net 352,000 subscribers in the second quarter, according to IHS.
In a market with nearly 95 million to 104 million subscribers, that really isn’t such a big deal. That’s a market shrinkage of about one-tenth of a percent, to three-tenths of one percent.
Some might point to apparent disinterest in video services on the part of younger consumers forming households.
So far, thought, the changes indicate we are past the peak of the product life cycle, but are not yet in a “disruptive” phase where the decline becomes significant.
Multi-channel Video Provider | Subscribers at End of 2Q 2013 | Net Adds in 2Q 2013 | Net Adds in 2Q 2012 |
Cable Companies | |||
Comcast | 21,776,000 | (159,000) | (176,000) |
Time Warner | 11,911,000 | (189,000) | (169,000) |
Charter | 4,073,000 | (51,000) | (72,000) |
Cablevision* | 3,171,000 | (20,000) | 0 |
Suddenlink | 1,189,900 | (22,900) | (19,900) |
Mediacom | 983,000 | (16,000) | (22,000) |
Cable ONE | 575,762 | (12,418) | (9,610) |
Other Major Private Cable Companies** | 6,810,000 | (85,000) | (70,000) |
Total Top Cable | 50,488,762 | (555,318) | (538,510) |
Satellite TV Companies (DBS) | |||
DirecTV | 20,021,000 | (84,000) | (52,000) |
DISH | 14,014,000 | (78,000) | (10,000) |
Total Top DBS | 34,035,000 | (162,000) | (62,000) |
Telephone Companies | |||
Verizon FiOS | 5,035,000 | 140,000 | 120,000 |
AT&T U-verse | 5,001,000 | 233,000 | 155,000 |
Total Top Telephone Companies | 10,036,000 | 373,000 | 275,000 |
Total Multi-channel Video | 94,559,762 | (344,318) | (325,510) |
Sources: The Companies and Leichtman Research Group, Inc.
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