Top Pay-TV Providers Lost About 5M Subscribers In 2023

Leichtman Research Group, Inc. (LRG) found that the largest pay-TV providers in the U.S. – representing about 96% of the market – lost about 5,035,000 net video subscribers in 2023, compared to a pro forma net loss of about 4,590,000 in 2022.

The top pay-TV providers now account for about 71.3 million subscribers – with the top seven cable companies having about 34.1 million video subscribers, other traditional pay-TV services having 21 million subscribers, and the top Internet-delivered (vMVPD) pay-TV services (including estimates for YouTube TV) having 16.2 million subscribers.

Key findings for the year include:

• Top cable providers had a net loss of about 3,825,000 video subscribers in 2023 – compared to a loss of about 3,540,000 subscribers in 2022
• Other traditional pay-TV services had a net loss of about 3,105,000 subscribers in 2023 – compared to a loss of about 2,720,000 subscribers in 2022
• Top vMVPDs added about 1,895,000 subscribers in 2023 – compared to a gain of about 1,670,000 subscribers in 2022
• Traditional pay-TV services (not including vMVPD) had a net loss of about 6,930,000 subscribers in 2023 – compared to a net loss of about 6,260,000 in 2022

“The top pay-TV providers had a net loss of about 5 million subscribers in 2023, compared to a pro forma loss of about 4.6 million subscribers in 2022,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc.  “At the end of 2023, top pay-TV providers had about 71.3 million subscribers, down from 91.5 million at the end of 2018.”

Meanwhile, YouTube TV, the fast-growing virtual multichannel video programming distributor, is expected to post a profit for the first time in 2024, according to analyst Michael Nathanson of MoffettNathanson.

Nathanson sees YouTube TV having operating income of $200 million in 2024, following a loss of $300 million in 2023. He sees net income continuing to rise, hitting $600 million in 2026.

In February, parent company Alphabet reported that YouTube TV grew to 8 million subscribers, making it the third-biggest pay-TV distributor, following cable giants Charter Communications and Comcast.