Pay TV: Making money but losing audiences
Cable and satellite television7 remain significant players in media and entertainment, though subscriptions continue to decline. We found that 49% of consumers surveyed currently have a cable or satellite TV subscription, down from 63% three years ago.8 The primary reasons subscribers report paying for these services are to watch live news (43%) and sports (41%). However, the market continues to fall, likely because SVOD services now offer more live sports options, and social media provides free sports clips and news recaps.
Older generations are more likely to maintain cable or satellite TV subscriptions, but 23% of Generation Z and 18% of millennial cable subscribers intend to terminate their subscriptions within the next 12 months, compared to only 8% of boomers.
Cost is likely a factor for these younger subscribers looking to cancel: Subscribers report spending an average of $125 per month on their cable or satellite TV subscriptions, which is significantly higher than the $69 on average subscribers report spending for four paid streaming services combined, according to our Digital Media Trends data. Subscribers also feel frustration with the number, and quality, of ads they’re required to watch at this higher price point.9
Live-streaming TV services offer an alternative, are slightly more popular with younger generations surveyed, and live-streaming TV subscribers in our survey report spending 35% less monthly on…
