Disney-DirecTV: Blackout Hurts Pay TV But Doesn't Cause Exodus

Pay TV Loss Continues

U.S. pay-TV providers lost 1.62 million subscribers in the second quarter of 2023, continuing a long-term trend of cord-cutting.

The decline was driven by losses at traditional cable and satellite TV providers, which lost a combined 1.43 million subscribers. Streaming services gained 310,000 subscribers during the same period.

Disney-DirecTV Blackout

The blackout between Disney and DirecTV, which began on July 1, 2023, likely contributed to the pay-TV subscriber losses. The blackout affected about 13 million DirecTV subscribers who lost access to Disney-owned channels such as ESPN, ABC, and the Disney Channel.

However, the blackout does not appear to have caused a mass exodus of DirecTV subscribers. According to Leichtman Research Group, only about 2% of DirecTV subscribers have dropped their service since the blackout began.

Cord-Cutting Continues

The continued decline in pay-TV subscribers is due to a number of factors, including the rise of streaming services, the increasing cost of cable and satellite TV, and the growing popularity of mobile devices for watching video.

Streaming services offer a more flexible and affordable alternative to traditional pay-TV, and they are increasingly offering live TV and sports programming.

The cost of cable and satellite TV has also been rising steadily in recent years, making it less affordable for many consumers.

Mobile devices are also becoming increasingly popular for watching video, and this is further eroding the demand for traditional pay-TV.

Impact on Pay-TV Providers

The decline in pay-TV subscribers is having a significant impact on the industry. Traditional cable and satellite TV providers are losing revenue and market share to streaming services.

Some pay-TV providers are responding to the changing market by offering their own streaming services. Others are partnering with streaming services to offer bundled packages.

It remains to be seen how the pay-TV industry will evolve in the coming years. However, it is clear that streaming services are playing an increasingly important role in the way people consume video content.

Source: Disney-DirecTV blackout doesn't cause mass subscriber exodus