Subscription revenue for streaming TV services is expected to grow 17% to $69 billion in 2024, according to Convergence Research’s latest Couch Potato Report.
The report projects double-digit growth for subscription revenue continuing through at least 2026. But as revenue is going up, growth in the number of net subscribers signing up for service is going down.
The report expects subscriptions added per year will average 40% less from 2024 to 2026 than it did from 2021 to 2023, with growth rates in the single-digit range.
Also Read: OTT Revenue in U.S. Rose 26% to $49.6 Billion in 2022
With media companies focusing on reducing streaming losses and producing profits, subscription prices have gone up.
Averaged across the Top 10 OTT providers, the average price increase was 11% in 2023 and the report expects a similar increase for 2024.
Accepting a streaming package that includes commercials can save a consumer 45% on fees, the report said.
On the traditional side of the media business, the report said that pay TV lost 7.76 million subscribers in 2023, with another 7.1 million in losses projected for 2024. The rate of loss is accelerating from 12% in 2023 to 13% in 2024 and 15% in 2026.
Pay TV revenue fell 10% to $77.6 billion in 2023. The report forecasts an 11% decline in 2024 and a 13% drop in 2026.
The number of homes with broadband increased by 3.7 million in 2023, and revenue grew 6% to $90 billion.
“While cable continues to maintain the lion’s share of residential broadband subs, cable’s annual share of net additions has fallen precipitously due primarily to T-Mobile and Verizon,” the report said.
