US pay TV penetration to hit lowest point in a decade within two years

Pay TV subscribers in the US are set to decline to under 77 million households within the next two years. 

According to Parks Associates, increasing cord cutting will see traditional pay TV subscribers decline to 76.7 million households by 2024. This would represent the lowest penetration in a decade and a 27% drop from 2014.

The report notes that many traditional pay TV companies are transitioning to streaming and rebranding as a result. This is also an increasingly congested market, with US consumers having access to more than 300 DTC streaming services.

The overall transition to streaming will also have a knock-on effect in terms of increased churn as services struggle to retain their viewers. Data from the research firm found that OTT subscription services averaged a 48% churn rate in Q1 2022, a 10% increase in two years. 

Paul Erickson, director of research, Parks Associates, said: “There has been substantial innovation over the years, but streaming’s debut changed the trajectory of the modern video service industry. 

“The evolution of streaming video has given consumers immense choice in how, when, and what they watch. The ease of trialling, subscribing, and cancelling services has created new dynamics and challenges for content companies and service providers.”