Study: U.S. Pay TV Thrown for Net Loss

Q1 gains not enough to avoid first-ever annual net subscriber loss, as consumers opted for mix of OTA and OTT options

Video subscriber gains in the first quarter of 2013 by top
U.S. service providers were not enough to avoid a first-ever net subscriber
loss in the category over a four-quarter period, Leichtman Research Group (LRG)
reported Monday.

LRG's analysis of the top 13 multichannel video providers in
the U.S., representing 94% of the market, showed that they added about 195,000
net additional video subs in the period, down versus a net gain of about
445,000 in the year-ago quarter, and a net gain of about 470,000 in the
corresponding quarter of in 2011.

"These Q1 gains were not enough to offset subscriber losses
from Q2 and Q3 2012, leaving major multi-channel video providers with a net
loss of about 80,000 subscribers over the past year, compared to a net gain of
about 380,000 over the prior year," LRG said, noting that it marked the first
industry-wide subscriber loss over a four-quarter period since the firm began
tracking the data over a decade ago.

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