New data from Convergence Research highlights some trends that will continue to fuel growth in streaming media, with cord-cutter/cord-never homes in the U.S. growing to 72% of all households in 2025 and traditional pay TV video offerings seeing even larger sub losses in the next few years.
"Net-net traditional TV access [from a pay TV subscription] is well into becoming a niche product (even if we included vMVPDs in our TV numbers)," the report states according to TVTechnology.
“The Battle for the North American (US/Canada) Couch Potato: OTT and TV” report analyzed more than 80 OTT services (over 50 providers), led by Netflix, Disney/Hulu, WBD, Amazon. Based on that data, it concluded that 2022 U.S. OTT access revenue grew 26% to $49.6 billion and forecasts 21% growth in 2023. But that growth will significantly slow to 13% in 2025.
Much of this is being fueled by an ongoing slump in the pay TV ecosystem. The report estimates that 2022 U.S. cable, satellite, telco TV access revenue declined 6% to $85.8 billion and will drop by even larger rates in the future, with a 9% decline in 2023 and 13% in 2025.
Meanwhile the decline of 7.37 million U.S. TV subscribers in 2022 will grow to a 8.24 million TV pay TV sub loss in 2023, Convergence estimated. That means U.S. pay TV subs, which declined by 11% in 2022, will drop by even faster rates in the next few years, with a 14% decline in 2023 and 16% in 2025.
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