Both eMarketer and MoffettNathanson anticipate a record drop in pay TV subscriptions in the US.
2020 has not been a great year for almost anyone. But if there is one sector that will be particularly affected, it is pay TV in the US, which is preparing for a record annual decline.
That, at least, is what consulting firm eMarketer anticipates, which predicts that up to 6.6 million households in the US will cancel their pay TV subscriptions this year.
That would bring total cord-cutters to 31.2 million households, leaving pay TV with 77.6 million subscribers by the end of the year. It is a 7.5% drop from the previous year and would be the largest in history.
“Consumers are choosing to cut the cable because of high prices, especially when compared to streaming alternatives,” explained Eric Haggstrom, analyst at eMarketer.
“The loss of live sports this year contributed to this decline. While sports are back, many subscribers have not,” he added.
According to eMarketer, by 2024 less than half of American households will have pay TV.
The consulting firm MoffettNathanson, specialized in media, goes a step further and affirms that this year the fall will be between 7.7% and 8.3%. At this rate, they warn, the ecosystem of traditional pay TV in the US will have disappeared in just 12 years.