This week UBS released its Evidence Lab Streaming TV Monitor report. This report looks at the current state of live TV streaming services and tries to predict the future of the industry. According to this report, it predicts that live TV streaming service growth will slow down and Sling TV and DIRECTV NOW will likely be two of the services most impacted by this slowdown.
“While growth in streaming TV has helped stabilize video market declines in recent years, we expect streaming TV growth to slow with the recent price increases and a greater focus on profitability. Along with worsening traditional losses, we expect total video subs to fall 3.4% in 2Q, accelerating from -2.3% in 1Q and +0.2% this time last year,” wrote UBS analyst John Hodulik in a research note.
Now, this does not mean the growth of cord cutting will slow down. Many are predicting that cord cutting will continue to see record growth. In just the first three months of 2019 cord cutting grew by over 1 million setting a new record. What this likely points to is the fact that most cord cutters do not subscribe to live TV streaming services. According to USB, there are about 8 million subscribers to a live TV streaming service. Yet in the United States, there are an estimated 35 million cord-cutters. Once again this points to the growth of cord cutting being with Americans not switching over to a live TV streaming services but other options like on-demand only or using antennas.
For now, these are just predictions but does once again support the idea that the fastest-growing segment of cord cutting is not live TV streaming services.
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