Pay TV Market Shrinking, But TV Homes Increasing

Nielsen is reporting that the number of TV homes has expanded to 119.6 million for the 2017-2018 season. For the 2016-2017 season, Nielsen said there were 118.4 million TV homes.  However, as TV households continue to expand, the number of homes with pay TV continues to decline. The number of pay TV subscriptions in the U.S. has fallen from 104.1 million in 2010 to 98.7 in 2016. Two-thirds of the decline came in the four years between 2013 and 2016.

The source of content for these new television homes is coming from two primary sources. The first, and perhaps biggest, group is streaming video to their TVs. Over the past three years, the penetration of enabled smart TVs has almost doubled, from 14% to 27%.~ At the same time, the number of homes using a streaming media player has increased from 18% to 29%.

The second source of content for these new television homes is good old antenna television. Between Q1 2015 and Q1 2017, the number of homes watching television with an antenna increased from 12.5 million to 15.2 million. However, almost all the increase in antenna homes came from homes that also have broadband. In those homes, it is likely people use both broadcast television and streaming services on the big screen.

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