Pay TV in 84% of U.S. Homes

According to Leichtman Research Group, about 84% of households nationwide subscribe to some form of pay TV service. While the reported number of pay TV subscribers has been fairly flat over the past four years, occupied housing in the United States has grown. Consequently, penetration of pay TV among residential households has waned from its peak in 2010 following the digital transition.

Among TV households that do not currently subscribe to a pay TV service, 6% plan to subscribe to a pay TV service in the next six months, including 20% of those who subscribed in the past year, 2% who subscribed more than one year ago, and 4% who never subscribed. Overall, 35% of non-subscribers never subscribed to a pay TV service.

Other findings indicate:

• Nationwide, 22% of TV households with annual incomes of less than $50,000 are non-subscribers, compared to 13% with incomes greater than $50,000.
• Mean reported monthly spending on pay TV service is $89.78, an increase of 36% since 2009.
• 12% of cable TV subscribers, 12% of telco TV subscribers, and 11% of satellite TV subscribers are likely to switch from their current provider in the next six months.
• 11% of non-subscribers cite the Internet or Netflix as the main reason for not currently subscribing to a pay TV service, compared to 3% in 2009.
• 22% of those who moved in the past year do not currently subscribe to a pay TV service, a higher level than in previous years.