Second quarter pay TV cord-cutting resulted in a 1.6 million subscriber decline -- bringing the first six months of 2024 to a “mind-boggling” 4.08 million, according to Mediapost citing MoffettNathanson Research estimates.
Each of the first and second quarters registered a 6.9% decline versus the same periods the year before. In 2023, the first two quarters had 6.8% drops, where there was also a collective 4.07 million decline.
Total U.S. linear pay TV subscribers now stand at 68.8 million.
Taking out newer virtual pay TV services (YouTube TV, Hulu+Live TV, for example) the traditional pay TV systems (cable, satellite, telco) posted worse declines -- 12.6% in the second quarter and 12.3% in the first quarter. That total now stands at 49.8 million subscribers.
Virtual pay TV platforms posted a collective second quarter 49,000 gain -- a 12.4% rise versus the same period a year ago, now totaling 19 million. YouTube TV gained 50,000; Sling TV, 78,000; and DirecTV Now, 82,000. Posting losses: Hulu+Live TV, 100,000; and Fubo TV, down 21,000.
YouTube TV continues to be the leader among virtual pay TV, now at 8 million subscribers.
MoffettNathanson Research says converting those traditional pay TV subscribers -- who have abandoned services (cord-cutters) -- into virtual pay TV services -- continues at a modest pace in the period, a 29% conversion 12-month trailing rate.
The trailing 12-month rate of securing traditional pay TV subscribers has remained in the 25% to 30% range since the first quarter of 2020.
Lower subscriber numbers also mean declining overall affiliate fees for major TV network groups. Collectively, the top six TV network groups had affilate revenues sinking 6.3% in the second quarter to $8.5 billion.
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