According to Media Research Group, Kagan, Q1 2020 was the industry's greatest ever first-quarter decline for traditional multi-channel subscriptions and the most significant quarterly drop to-date. Kagan estimates that broadband-delivered services lost approximately 261,000 subscriptions, which accounts for 2.8%, and finished the quarter with 9.2 million subscriptions.
YouTube TV and Hulu with Live TV increases were overlooked due to the decline from Sling TV and AT&T TV. Sony has also decided to shutter PlayStation Vue in January. Subscriptions through traditional cable (telco), direct broadcast satellite (DBS), and telecommunications video services have dropped by 2.4% throughout the quarter. The challenges brought upon the beginning of the year forced the research group to readjust its forecast for video market share in the country. The revised findings showed mounting unemployment and that the economic downturn that resulted from the virus only accelerated cord-cutting.
This figure led to the expectation that the number of online-only households would rise and surpass combined traditional and virtual multi-channel subscriber projections. With programming delays and suspensions resulting in an economic turmoil, Kagan predicts an 11% drop in traditional multi-channel subscriptions in 2020, and “penetrations” of less than 56% at the end of the year. Virtual services have narrowed their cord-cutter appeal and expect less than 10% of occupied households to reach nearly 11 million by the end of the year.
The increasing popularity of online-only households serving as a satisfactory means of entertainment is expected to continue, with acceleration in subscription streaming service combinations underway to 24.7 million by the end of 2020, which reflects 19% of U.S. occupied households.