The pay TV sector continues to grapple with declining subscription rates. This is the conclusion of the US Multi-Channel Subscription report for the third quarter of this year.
The information was compiled by Kagan, a media research panel within the S&P Global Market Intelligence, an international research firm.
The cable, telecommunications multi-channel, and the direct broadcast satellite (DBS) businesses jointly lost a total of 1.2 million video customers in the three-month period which ended on September 30.
The third quarter concluded with 91 million customers for these industries combined, including 88.2 million residential consumers.
Optimism for the pay TV sector is, apparently, dwindling as the research results for the third quarter was released.
The acceleration of subscriber losses is making the subscription TV sector weak. The drivers for the decline are the addition or gaining of customers by the Internet or streaming TV services.
This shows that service providers in the pay TV sector are experiencing massive customer churn.
Their subscribers opt to stop their relationship with these companies, closing their accounts, cancelling their subscriptions, or terminating their memberships.
The quarterly report of Kagan now consists of the total virtual multi-channel subscriptions from streaming TV service providers like DirecTV Now, YouTube TV, Sling TV, PlayStation Vue, and Hulu with Live TV.
The streaming TV services acceded approximately 2.1 million subscribers in the past nine months.
The additional key findings by the third quarter US Multi-Channel Subscription report of Kagan stated that as of September 30, the approximated virtual multi-channel sector and the traditional multi-channel sector had a 76.2 percent household penetration rate.
On the same date, pay TV sector players or cable TV lost their grip of roughly 1.1 million customers year-to-date.
Since 2014, this marks the most adverse performance of these cable TV companies in three quarters.
The DBS industry had its unwelcoming quarter on record. It is reported to have lost a total of 726,000 customers.
Traditional telecommunications subscribers nosedived by 94,000. Verizon Wireless lost over 63,000 customers.
Apparently, the digital entertainment industry is currently being dominated by Internet-based services like the streaming TV and subscription video-on-demand services.
Considering this fierce battle in the digital entertainment realm, companies in the pay TV sector must find measures to keep themselves afloat, effectively preventing the unstoppable customer churn.