Leichtman Research Group released new findings that show about 82 percent of TV households nationwide subscribe to some form of pay TV service. That percentage is down from 87 percent in 2011, and similar to 82 percent in 2005.
Among TV households that do not currently subscribe to a pay TV service, 14 percent reportedly paid for a service in the past year. Overall, about 2.6 percent of TV households paid to subscribe to a traditional pay TV service in the past year, but currently do not -- compared to 2.5 percent in 2015, 3 percent in 2014, 1.5 percent in 2011 and 2 percent in 2006, LRG reports.
While those who stopped subscribing to a service in the past year is similar to last year and to a decade ago, the study found that about 1 percent of pay TV subscribers were new to the category in the past year -- compared to 1 percent in 2015, 1 percent in 2011 and about 3.5 percent in 2006.
The LRG research report, “Cable, DBS and Telcos: Competing for Customers 2016,” is based on a telephone survey of 1,206 households from throughout the United States. This is the 14th annual study on the topic from the research firm.
The research also shows that around 6 percent of pay TV subscribers are likely to disconnect from their provider and not subscribe to any TV service in the next six months -- similar to 7 percent in 2015, and 7 percent in 2014. Mean reported monthly spending on pay TV service is $103.10, which is said to be an increase of 4 percent in the past year (the lowest annual increase in five years), according to LRG.
"The rates of those exiting the category, or intending to leave, are actually similar to recent years. The decline in penetration is also due to a lack of those who are coming into the category, and the industry not keeping pace with movers and related rental housing growth," Bruce Leichtman, president and principal analyst for Leichtman Research Group, says.