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Virtual multichannel projected to top 15 million subscribers

Monterey, CA , Jun. 22 2018 — Pressure is on for traditional services with “skinny” bundles says Kagan U.S. Multichannel Forecast
The increasing popularity of virtual multichannel services along with the staying power of traditional, big-subscription packages are still expected to account for more than 70% of households through 2022,  according to the latest forecast from Kagan, a media research group within S&P Global Market Intelligence.  However, cord cutting is projected to reduce the overall number of households with a subscription to live linear channels in the near-term outlook.
 
Consumer appetites for traditional multichannel packages are waning, driving expectations for a contraction in the number of households in the U.S. with a classic cable, telco or satellite video offering. While “skinny” bundles from so-called virtual multichannel platforms are tapping into the demand to downsize the traditional cable bill, growth in self-aggregating, online-only households, as well as homes that rely on antennas for over-the-air (OTA) reception, are expected to pressure take rates.
Key takeaways from Kagan’s latest Multichannel household forecast through 2022:  
  • Traditional residential multichannel households, excluding commercial and dual-subscription households, projected to decrease by 14.3 million to 75.4 million.
  • Virtual Multichannel households projected to increase by 10.6 million to 15.3 million.
  • Combined traditional and virtual multichannel households projected to decrease by 3.7 million to 90.4 million. 
  • Online Video Only households projected to increase by 6 million to 18.2 million.
  • Over-the-air households, excluding antenna-equipped multichannel subs, projected to increase 3.1 million to 19.1 million.
To access to the full report, please reach out to Farhan.husain@spglobal.com. 
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