As of the third quarter of 2024, 6.6 percent of U.S. households cut the cord. The number of pay TV subscriptions is likely to further drop in the near future as more and more people opt for streaming services.

According to a survey conducted in the second quarter of 2024, around one in five adults in Canada and the U.S. planned to cut the cord in the next six months. This marked a decline from 27 percent who stated the same the previous year.

This statistic shows the share of Generation X adults who cut their cable subscription in Canada as of May 2018. The data reveals that as of the date of survey 62 percent of surveyed Canadians in the Generation X age group said that they had cut their cable subscription, however just 21 percent said that they had never subscribed to a pay TV service.

Data revealed that the number of traditional pay TV households in the United States stood at around ** million in 2023. This figure will likely drop further over the next few years and amount to less than ** million by 2028. Meanwhile, digital pay TV is becoming increasingly popular. Pay TV is fighting an uphill battle The United States is one of the largest pay TV markets worldwide based on penetration. But even though millions of viewers frequently tune in to watch their favorite shows, news broadcasts, and sports events on the small screen, the U.S. pay TV industry is facing enormous challenges. More viewers are canceling their cable or satellite subscriptions than ever, be it because of mounting prices, limited content offerings, or the proliferation of over-the-top (OTT) video services and streaming platforms. Based on the latest data, over half of TV households in the country are currently without a telco, cable, or satellite TV provider. Can cable companies combat subscriber loss? The cord-cutting movement and other recent changes in consumer behavior have had a substantial impact on the pay TV landscape and its players. In 2023, U.S. pay TV providers suffered a combined net subscriber loss of around **** million viewers. This downward trend also extends to the largest pay TV providers in the U.S., such as Charter and Comcast. However, they have recently ventured into the world of streaming to offset subscriber losses, but whether this expansion will be enough to effectively combat churn remains to be seen.

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Pay TV Market Size 2024-2028

The pay TV market size is forecast to increase by USD 23.6 billion at a CAGR of 2.09% between 2023 and 2028. The market is experiencing significant shifts as online streaming platforms gain popularity and consumer preferences lean towards more flexible and convenient viewing options. The sustained demand for live programming and sports remains a driving force, attracting viewers seeking real-time entertainment experiences. Cord-cutting, the trend of canceling traditional cable or satellite TV subscriptions in favor of streaming services, continues to rise. Regulations and licensing requirements remain important considerations for market players, necessitating strategic alliances and product development to remain competitive. Ease of use benefits offered by streaming services, such as on-demand access to content and the ability to watch shows and movies at any time, further contribute to the market's growth. As the industry evolves, players must adapt to these trends and challenges to maintain market share and meet the evolving needs of consumers.

What will be the Size of the Market During the Forecast Period?

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The market is witnessing significant growth, driven by advancements in broadcasting technologies, globalization of content, and the increasing disposable incomes of consumers. This trend is observed across various television platforms, including cable, satellite, and Internet Protocol Television (IPTV). Broadcasting technologies have evolved, enabling high-definition content and on-demand viewing. These advancements have led to an increase in the availability of diverse viewing options, catering to different consumer preferences. The globalization of content has further expanded the entertainment landscape, allowing consumers access to a wide range of premium content from around the world.

Similarly, subscription fees for Pay TV services have become more competitive, with bundled service packages offering a combination of exclusive sports channels, digital platforms, and free-to-air television. This strategy appeals to consumers seeking value for their investment. Digital infrastructure plays a crucial role in the market, enabling customization options and advanced technology integrations. Artificial intelligence (AI) is increasingly being used to provide content recommendations based on viewer preferences and watching history. Hybrid set-top boxes, which combine traditional cable or satellite services with IP-based content, are also gaining popularity. Premium content remains a key driver for the market.

Also, content providers are investing heavily in producing high-quality programming to attract and retain subscribers. Exclusive sports channels, in particular, continue to be a significant draw for many consumers. In conclusion, the market is characterized by continuous advancements in technology, global content availability, and competitive pricing strategies. These trends are shaping the future of television entertainment, offering consumers diverse viewing options and personalized experiences.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  Residential
  Commercial


Type

  Cable TV
  Satellite TV
  IPTV


Geography

  North America

    US


  Europe

    Germany
    UK


  APAC

    China
    India


  South America



  Middle East and Africa

By Application Insights

The residential segment is estimated to witness significant growth during the forecast period. The market experienced significant growth in 2023, with the residential segment holding a substantial share. Traditional cable pay TV continues to provide a reliable and consistent signal in regions with established digital infrastructure, making it an attractive option in areas with unreliable internet connectivity. To remain competitive, pay TV providers have adapted their services, offering digital features and on-demand content.

Furthermore, the integration of streaming services and smart TV functionalities has become commonplace to enhance user experience. The advancement of technology has led to the introduction of high-definition content, such as 4K and HDR broadcasting, which has significantly improved picture quality. Bundling services with internet and phone packages has also emerged as a popular strategy to retain customers. Hybrid set-top boxes enable seamless access to both traditional pay TV and on-demand content, providing flexibility and convenience to viewers. Artificial intelligence and content recommendations further personalize the viewing experience, catering to individual preferences.

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The U.S. cable and pay TV industry has experienced significant shifts recently, with revenues declining between 2021 and 2022 to ***** billion U.S. dollars. The long-standing trend of consistent growth of traditional television stopped in 2018, as viewers are increasingly opting for on-demand streaming alternatives. Advertising remains king Advertising and program revenue continue to be the major contributors to the industry's financial health. In 2022, U.S. cable and pay TV providers generated around ** billion U.S. dollars in revenue from advertising and programming, underscoring the ongoing importance of advertising in the traditional pay TV sector, despite the rise of streaming platforms and digital video advertising. Cord-cutting driven by cost and content availability Cost remains the primary factor for terminating pay TV, with nearly ************** of respondents in a 2024 survey citing cable's expense as their main reason for canceling their service. Additionally, many viewers no longer feel the need for cable to access desired content, turning instead to streaming platforms. This shift is particularly pronounced among younger demographics - ** percent of the U.S. population aged 18 to 34 years are extremely likely to cancel their pay TV subscriptions within the next year. Meanwhile, older viewers stay more loyal to traditional cable services.

The U.S. pay TV industry continues to face challenges, with revenues declining. In 2022, providers generated around 57.18 billion U.S. dollars from advertising and licensing of rights to broadcast programs, while air time advertising brought in 28.77 billion U.S. dollars, both down from the previous year. A change in consumer behavior The pay TV market is experiencing significant shifts on a global scale. The number of pay TV subscribers worldwide declined by nearly 30 million between 2021 and 2023 to around 985 million. In the U.S., cord-cutting reached a decade-high rate of 6.9 percent in the second quarter of 2024, signaling a continued trend away from traditional pay TV services. Plans after cutting the cord As consumers reassess their entertainment options, the future of pay TV remains uncertain. A 2024 survey revealed that over 40 percent of U.S. respondents plan to use subscription video-on-demand services after canceling their pay TV subscriptions. However, about one in four adults who were likely to cancel their pay TV service in the next year indicated they would switch to another pay TV provider. This suggests some resilience in the market, and underscores the need for companies to adapt their offerings and business models to retain subscribers in an increasingly competitive television and streaming industry.

Estimates suggest that in 2026 U.S. adults will spend around ** percent of their time watching traditional TV each day. This figure has generally fallen in recent years and the downward trend is forecast to continue in the years to come. Screen time Although average daily time spent watching TV appears to be decreasing, this does not necessarily mean that people are spending less time in front of screens; this drop is likely due to an increasing amount of time spent with phones, tablets, and laptops. With on-demand streaming services such as Netflix gaining massive popularity, people can watch a huge range of programming whilst on the go, meaning that screen time is no longer limited to time spent at home in front of the TV. Young people around the world have been especially quick to adopt smartphone-based video streaming habits meaning that television screen time will likely fall even further in the future. Television in the U.S. As mentioned above, the way people are consuming their video entertainment content is rapidly changing in the United States. By 2028, estimates suggest that only **** million U.S. households will pay for traditional TV services, down from over ** million as of 2019. In order to compete for people’s business, cable and satellite providers must find a way to adapt in a way the meets the needs of today’s increasingly mobile consumers. Some are launching their own streaming services in a bid to tackle cord-cutting, most notably Comcast.

According to estimates, there were *** million TV homes in the United States for the 2023-2024 TV season. Whilst the number of TV households continues to grow, pay TV is becoming less popular – the pay TV penetration rate in the U.S. was pegged at ** percent in 2023, marking a drop of over ** percentage points in just five years. The changing TV landscape The trend of consumers (especially younger generations) cutting the cord and instead moving online to streaming services has meant that many pay TV providers have struggled to keep afloat. In spite of this, television statistics show that watching terrestrial TV is still a popular media activity among U.S. consumers. Television has been a popular pastime for so long that it seems impossible the medium could ever die out – but its traditional form is certainly changing. The advent of ** and smart TV technology, as well as connected TV devices, mean that the ways in which we watch television are changing all the time. User demographics A key factor when considering television consumption in the United States is how a consumer’s age affects their viewing habits and preferences. As of 2022, the average daily time spent watching TV among adults aged 75 years and older amounted to nearly **** hours. ** to **-year-olds spent just around *** hours per day consuming TV content. Moreover, the share of cable TV subscribers was higher among older adults, with half of consumers aged 65 years and older subscribing to a cable TV service, compared to ** percent of ** to **-year-olds at the beginning of 2023.

Technological advancements like DTH and IPTV combined with the ever-changing content of the Indian television have had a positive impact on the television industry in the nation. The number of television households in the south Asian country stood at *** million in 2022. Factoring in a possible rise in cord-cutting trends in the country over the years to come, TV households were expected to grow to *** million by 2026. More channels, more choiceWith *** channels to choose from, people are spoilt for choice with categories ranging from regional TV shows, to international shows and general entertainment categories and so on. The Hindi general entertainment category channel “Dangal” had over *********** weekly impressions in 2019. The Hindi-speaking market dominates the viewership of the television industry with over *********** impressions in 2017. Daily entertainmentWith an average of almost **** hours spent watching television every day, the television viewership has been on the rise. Despite the availability of cheap data and the rise of entertainment streams like Netflix and Hotstar, the dedication and comfort of having the evening Chai in front of the television seems irreplaceable.

In 2023, Walt Disney Company was the largest media company worldwide, with a market value of 183 billion U.S. dollars. In second place was Comcast Corporation with a market value of 170 billion U.S. dollars, followed by Charter Communications, Inc. at 53 billion U.S. dollars. Spotlight: Disney’s ever strong presence Not only is Disney a household name loved for its merchandise, theme parks, and near timeless appeal, it is also one of the most valuable media brands in the world. Despite the death of Walt Disney in 1966, the company went from strength to strength and kept up with the pace of every fast-moving market of which it is a part, with the most recent addition being streaming service Disney+. The Walt Disney Company has multiple assets, and its entertainment holdings include Marvel Studios, Lucasfilm, 20th Century Fox, Pixar, and ESPN Inc. These are indisputably Disney’s biggest money makers, as the media and entertainment segment accounts for 65 percent of the total. Spotlight: Comcast competing for customers Comcast, the owner of such entertainment brands as NBCUniversal, Sky, DreamWorks, and Universal Studios, generates the largest share of its revenue from its cable communications segment, at more than 53 percent. However, the growth of the video streaming market and the subsequent increase in cord-cutting in the United States is directly impacting the subscriptions of most companies and Comcast is no stranger to this trend. Since 2018, the company has seen losses in video subscribers intensify year-on-year. Comcast’s ad-supported streaming service, Xumo, competes with Roku, Pluto, and Plex for the number of channels offered to stay in the game and attract consumers.