The cord-cutting revolution is continuing at a record pace.
According to an estimate by analyst MoffettNathanson, the pay-TV (or subscription television) industry lost a record 2.37 million subscribers, a decline of 6.9%, in the first quarter of 2024.
Cable providers have been watching for years as customers, specifically younger viewers, drop their cable subscriptions, or don’t even sign up at all. Now, the industry struggles are extending to subscription services, once hailed for their enormous growth potential as an alternative to cable.
Not even the industry leaders were immune to the losses. MoffettNathanson estimates that YouTube TV lost 150,000 subscribers in the first quarter, its first quarterly loss. In addition, Hulu + Live TV, Fubo, and Sling also lost subscribers in the quarter.
Equity analyst Craig Moffett surmised that many users canceled their subscription services when the NFL season ended in February.
Streaming services should show improved figures for the second quarter given preliminary information. Nielsen’s The Gauge report for May reported record numbers for streaming’s share of TV usage. The category garnered an all-time high with a 38.8 percent share of overall TV viewing. YouTube owned 9.7% of that total, with Netflix checking in at 7.6%.
Many reasons have been cited for the continued decline in pay-tv subscribers, including rising costs for subscriptions, convenience, and competition from other entertainment (think TikTok and other social media),
