US Pay-TV Suffers Loss in Q2: Disney-DirecTV Blackout Contributes to Decline

US Pay-TV Loses Subscribers in Q2

The pay-television industry in the United States experienced a decline in subscribers during the second quarter of 2023. According to Leichtman Research Group, the industry lost approximately 1.62 million subscribers during the quarter. This represents the largest quarterly loss since the company began tracking the industry in 2009.

The decline was driven by a number of factors, including the ongoing shift to streaming services. More and more consumers are opting to watch their favorite shows and movies online, rather than through traditional pay-TV providers. The Disney-DirecTV blackout also contributed to the subscriber loss. The blackout, which began on July 1, 2023, left millions of DirecTV customers unable to watch Disney-owned channels, including ESPN, ABC, and Disney Channel.

Streaming Services Gain Popularity

The rise of streaming services has been a major factor in the decline of pay-TV. Streaming services offer a more convenient and affordable way to watch content. They also offer a wider variety of content than traditional pay-TV providers. As a result, more and more consumers are cutting the cord and switching to streaming services.

In the second quarter of 2023, the top streaming services in the United States were Netflix, Amazon Prime Video, Hulu, and Disney+. These services offer a wide range of content, including movies, TV shows, and documentaries. They also offer original programming that is not available on traditional pay-TV providers.

Disney-DirecTV Blackout

The Disney-DirecTV blackout was another factor that contributed to the decline in pay-TV subscribers. The blackout began on July 1, 2023, and left millions of DirecTV customers unable to watch Disney-owned channels. The blackout was caused by a dispute between Disney and DirecTV over the terms of their carriage agreement.

The blackout lasted for 15 days, and it had a significant impact on the pay-TV industry. DirecTV is the largest pay-TV provider in the United States, and the blackout left many of its customers without access to popular channels such as ESPN, ABC, and Disney Channel. The blackout also caused many customers to cancel their DirecTV subscriptions.

Conclusion

The pay-television industry in the United States is facing a number of challenges. The rise of streaming services and the Disney-DirecTV blackout have both contributed to the decline in pay-TV subscribers. It is unclear how the industry will respond to these challenges, but it is clear that the future of pay-TV is uncertain.