Leichtman Research Group's latest study found that the 13 largest pay-TV providers in the US added about 10,000 net video subscribers in the first quarter of this year. This is compared to a gain of about 170,000 subscribers in the same quarter a year ago. The 13 providers comprise 95% of the pay-TV market.
Those numbers would have been better if not for the losses incurred in the quarter by AT&T's U-verse service, according to Leichtman Research Group Inc. (LRG) president and principal analyst Bruce Leichtman. AT&T U-verse's 380,000 net losses in first quarter were the most losses ever in a quarter by any provider.
The top pay-TV providers accounted for 94.2 million video subscribers including 49.1 million from cable, 34 million subscribers from satellite and 11.1 million from telco providers, according to LRG.
The nine biggest cable operators added 50,000 video subscribers in the first quarter, compared to a loss of about 65,000 a year ago.
Factoring Dish's Sling TV OTT service, satellite TV providers added 305,000 subscribers in the same quarter compared to a gain of 95,000 the same quarter a year ago. Deducting Sling TV, satellite added about 175,000 new subscribers in the period, compared to a loss of 74,000 in Q1 2015.
The top telco providers lost 344,000 video subscribers, compared to a gain of 140,000 subscribers last year.
"While DirecTV and top cable providers had a comparatively strong quarter in 1Q 2016, their gains were largely offset by a historically weak quarter for AT&T U-verse," Leichtman said. "Overall, the traditionally strong first quarter for the pay-TV industry was tepid this year. Despite slight gains in the quarter, net adds in 1Q 2016 were down by about 160,000 from a year ago."
— Mike Robuck, Editor, Telco Transformation