Linear OTT pay TV subs in U.S reached 6 million

Dataxis Webinar-01

According to Dataxis, linear OTT pay TV continue to add subscribers in the United States. At the end of 2017, the subscriber base reached 5.96 million, up 21.9% compared to the previous quarter. Sling TV and DirecTV Now, which belong to traditional pay TV operators, dominated 57% of market share. Right behind were Playstation Vue and YouTube TV, which are positioned as the main challengers.
The information was disclosed during the webinar “US: Main trends of the OTT fever”, held on Thursday, April 5 by Camille Dupont, Analyst at Dataxis. According to the data, the pay TV market in the United States remains above 100 million subscribers. Traditional pay TV lost 5.7% of its base (-5.7 million subscribers) from Q116 to Q417, and all technologies were affected (DTH, Cable, IPTV).
In turn, Linear OTT services gained 4.5 million subscribers in the same period and thus contributed to control the erosion, allowing the total market to continue to grow slightly in recent quarters. As of Q417, Linear OTT subscribers represented 6% of the market, while in Q116 they accounted for 1%.
Linear OTT allows to retain part of the “cord-cutters” and attract the “cord-nevers”. However, the ARPUs of Linear OTT subscribers are much lower than in the rest of the other technologies, according to the Dataxis presentation.
The actors of linear OTT pay TV are becoming more numerous. Dish entered with Sling TV in 2015 and DirecTV with DirecTV Now in December 2016. They face competition from new pay TV actors like Playstation Vue and YouTube TV, among others.

The webinar presentation is available here