SEÑAL NEWS | RESEARCH WEEK #34

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HAS COVID19 ACCELERATED THE CORD-CUTTING TREND IN THE US?

#WEEK 34 ∙ AUGUST 2020

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HAS COVID19 ACCELERATED THE CORD-CUTTING TREND IN THE US? #WEEK 34 ∙ AUGUST 2020

CORD-CUTTING UNDER COVID19

Cord

er

7% Cord

H1 2020

25% 43%

-500,000

Traditional

S h av

er

US TV services subscriber defections during the first half of 2020, compared to the same time last year.

H1 2019

N ev

-1,000,000 -1,500,000

25% Comcast

AT&T

Dish

Charter

57%

Verizon

Source: Company earnings statements. Numbers include both traditional and internet-based TV services.

TOP-TEN PROVIDERS IN THE US LOST 1.52 MILLION SUBSCRIBERS IN THE Q2 SERVICE

PARENT COMPANY

PLATFORM

CHARGE QUARTER

SUBSCRIBERS

1

Comcast

Comcast Communications

Cable

-427,000

19.47

2

AT&T Premium TV

AT&T Corporation

Various

-886,000

17.69

3

Charter Spectrum

Charter Communications

Cable

102,000

15.65

4

DISH Network

DISH Network Corporation

Satellite

5,000

9.02

5

Verizon Fios

Verizon Communications

Telco

-81,000

3.99

6

Altice USA

Altice USA

Cable

-34,600

3.10

7

Sling TV

DISH Network Corporation

Online

-56,000

2.26

8

AT&T TV NOW

AT&T Corporation

Online

-66,000

0.72

9

Mediacom

Mediacom Communications

Cable

-17,000

0.68

Frontier

Frontier Communications

Cable

-61,000

0.56

10

THE DECLINE OF THE PAY TV BUNDLE

HOW TV BUNDLES MEASURE UP

Traditional TV (Comcast, Charter, Altice, AT&T/ DirectTV, Dish, Verizon)

Comcast Dish

Streaming TV (Sling TV, PS Vue, AT&T TV Now, FutoTV, Hulu + Live TV, YouTube TV)

Charter Verizon

AT&T TV Now

Altice Sling TV

RATE OF CORD-CUTTING SLOWED DOWN DURING QUARENTINE 1%

0%

Video Subscribers (quarterly growth)

2016 Q2

2017 Q2

-0.6%

-0.6%

2018 Q2

2019 Q2

2020 Q2

-0.4% -1%

-1.7% -2%

-2.0%

FuboTV

90M

Hulu w/Live TV

3.45 MILLION

80M

60M

Subscribers

75M 70M 65M

During the first half of the year, the five big pay TV providers lost a collective 3.45 million subscribers. Over the first six months of 2019, 2.42 million consumers cut the cord.

40M

20M

60M 55M

0

2018 Q2

2019 Q4

Source: EMC Analysis. Only includes Top 6 MVPDs (Altice USA, Charter, Comcast, DirecTV, DISH, Verizon) and their vMVPDs (DirecTV Now, Sling TV)

AT&T/DirecTV

85M 80M

-4%

PlayStation Vue

YouTube TV

Subscribers

have shaved, cut or never had traditional pay TV.

-3%

Source: Company earnings statements.

2017 Q1

Cord Cutter

2017 Q1

2018 Q2

2019 Q4

Source: Company earnings statements; estimates via Parks Associates, ComScore, CNBC, Bloomberg and MoffettNathanson.

PAY TV VS NETFLIX PERFORMANCE

BACK IN TIME Traditional TV distributors lost approximately 1.52 million subscribers during the second quarter. That brings total residential pay TV penetration down to about 60% of occupied households, a level not seen since 1994.

Quarterly subscriptions Netflix

200 m

Pay TV

150 100 50 0 2016 Source: Netflix and MoffettNathanson

2020