U.S. Pay TV Homes Steady, Monthly Prices Rise

Although cord-cutting/shaving worries continue, pay TV industry remains relatively solid -- in terms of the percentage of U.S. subscribers and higher consumer price.

Some 82% of TV homes are currently subscribed to a pay TV service, according to Leichtman Research Group. This is the same level as 2005, and slightly below the 87% high in 2011.

Nielsen says that in the second quarter of this year, there were 98.7 million pay TV homes -- a number that has been slowly declining. It was 100.4 million in the second quarter of 2015. Estimates are that the U.S population, as of September, was 324.2 million; it was 321.1 million in 2015.

Leichtman says 6% of viewers are likely to disconnect from their pay TV provider and not subscribe to any TV service in the next six months -- similar to the rate of 7% in 2015 and 7% in 2014

The research group adds that 12% of pay-TV subscribers are likely to switch from their provider in the next six months -- similar to 11% in 2015, and 12% in 2014.

The average consumer monthly cost for pay TV keeps rising -- though somewhat more slowly. Leichtman says it is at $103.10 -- a 4% hike, which the lowest annual increase in five years.

Research came from a telephone survey of 1,206 U.S. households.



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