Kagan: Cord-Cutting to Strip $33.6 Billion from U.S. Pay-TV Market


Video cord-cutting is expected to cost the traditional U.S. multichannel services nearly $33.6 billion in annual revenue in the next five years, according to Kagan.

The impact of the migration of consumers from big subscription services is charting a course for sales to dip from $91.1 billion in 2021 to $64.7 billion by 2025. Changing viewing patterns, only slightly moderated by rising average revenue per unit, are forecast to depress sales, excluding advertising, by 45 percent from the estimated 2016 annual peak of more than $116.9 billion.

Cable, direct broadcast satellite and telcos are all feeling the impact of the shift, but the magnitude of the losses is expected to hit more acutely for DBS and telco revenue subtotals amid waning commitments by major players and relative stability from the large cable providers.