The second quarter of 2015 was not a happy one for the pay television industry. It lost between 500K and 600K subscribers. This led to renewed debate in the media about how many people have cut the cord, leading to a sense that pay TV was under threat of imminent collapse. The truth is somewhat different from what the media may have led you to believe.
Looking at the data the pay TV industry has been in decline since 2010, when penetration peaked at 89%. It seems likely that decline will continue. Meanwhile, SVOD services like Netflix and Hulu continue to grow subscribers strongly. Content providers will be forced to move online to chase the shifting audience.
Chapter 1 Variety pay TV loss numbers (0:25)
Chapter 2 SNL Kagan pay TV loss numbers (0:40)
Chapter 3 What do these losses mean (1:20)
Chapter 4 Pay TV in decline (1:35)
Chapter 5 Pay TV on the brink of collapse? (2:45)
Chapter 6 Forecast for pay TV, Netflix subs? (3:50)
Chapter 7 What content providers will do (4:10)