Cord-cutting in the US has reached an all-time high, with an additional 2.3 million paid subscriptions for live multichannel TV packages in the first quarter, according to a new report.
Paid TV packages, including cable, satellite and streaming multichannel services, ended the first quarter with 75.5 million customers, down nearly 7 percent from a year ago, according to a report from SVB MoffettNathanson cited by Variety.
In comparison, Netflix, the largest streaming video-on-demand provider, reported 74.4 million paid streaming in the United States and Canada in the first quarter of 2023.
“We’re watching the sun go down” on the paid multichannel TV business, senior analyst Craig Moffett wrote in the report published Friday.
The report found that the total paid TV penetration of occupied U.S. households, including streaming multichannel services, fell to 58.5 percent, the lowest point since 1992.
Paid TV packages, including cable, satellite and streaming multichannel services, ended the first quarter with 75.5 million customers, down nearly 7 percent from a year ago
Cord-cutting in the US has reached an all-time high, with an additional 2.3 million paid subscriptions for live multichannel TV packages in the first quarter (stock image)
In the first quarter, cable giant Comcast lost 614,000 subscribers, the most of any television provider.
Meanwhile, Google’s YouTube TV streaming package was the only multi-channel provider to add customers and gain an estimated 300,000 subscribers.
Other streaming live TV packages lost subscribers for the quarter, according to the report.
Hulu lost about 100,000 live TV subscribers for the quarter, Moffett noted, while FuboTV lost 160,000 subscribers in North America, its biggest quarterly loss ever.
The MoffettNathanson report found that cable subscriptions were down 9.9 percent from a year ago, while satellite providers DirecTV and Dish Network were down 13.4 percent.
“The picture doesn’t suggest a plateau in the rate of decline is imminent,” Moffett wrote.
The shift away from paid multichannel packages has accelerated in the years since Netflix launched its streaming service in 2007, followed by a proliferation of competing services.
Google’s YouTube TV streaming package was the only multi-channel provider to add customers and gain an estimated 300,000 subscribers
In the first quarter, cable giant Comcast lost 614,000 subscribers, the most of any television provider
But despite its dominance, Netflix is facing signs of market saturation and is exploring new ways to make money, such as a crackdown on passwords and a new ad-supported service.
On Friday, the Wall Street Journal reported that Netflix plans to cut its spending by $300 million this year as the streaming pioneer looks for ways to increase profitability despite stiff competition.
Company leaders urged staff to manage their spending wisely, including on hiring, but said there would be no hiring freezes or additional layoffs, according to the report.
Netflix declined to comment. Shares of the company fell nearly 2 percent during afternoon trading.
Last month, Netflix topped estimates for the first quarter but offered a lighter-than-expected forecast, demonstrating the challenges it faces as it pursues growth.
The company said it pushed back a wider launch of a plan to address unauthorized password sharing to the second quarter to make improvements.
