Once the unchallenged titan of home entertainment, the cable TV industry now finds itself at a critical juncture, navigating a dramatic landscape where 25 million households have cut the cord since 2014 and streaming-only homes have doubled to 41% in just four years.
Key Takeaways
- In 2023, U.S. cable TV subscribers totaled approximately 69.9 million
- Cable penetration in U.S. households fell to 53% in 2023 from 80% in 2010
- Multichannel video programming distributor (MVPD) subscribers declined by 5.3 million in 2023
- Cable TV revenue reached $102 billion in 2022
- Average revenue per user (ARPU) for cable was $123/month in 2023
- Cable networks ad revenue fell 8% to $18B in 2023
- Cord-cutting caused 7M subscriber losses 2019-2023
- Monthly churn rate for cable averaged 1.8% in 2023
- 25 million households cut cord since 2014
- Cable viewers spent 4.1 hours/day in 2023
- Live sports account for 40% of cable viewership in 2023
- News channels drew 25% of non-streaming TV time in 2023
- Netflix holds 8% US TV market share vs cable's 30% in 2023
- YouTube TV captured 10% pay-TV share in 2023
- Comcast leads cable MSOs with 21M video subs in 2023
Cable TV subscriptions are steadily declining as consumers increasingly choose streaming services instead.
Competition and Market Share
- Netflix holds 8% US TV market share vs cable's 30% in 2023
- YouTube TV captured 10% pay-TV share in 2023
- Comcast leads cable MSOs with 21M video subs in 2023
- Charter has 14.7M cable customers in 2023
- DirecTV satellite share 12% of pay-TV in 2023
- Hulu + Live TV grew to 4.5M subs in 2023
- Amazon Prime Video 20% streaming share vs cable 25% total 2023
- Altice USA (Optimum) 3M video subs in 2023
- Sling TV 2.3M subs, down 10% in 2023
- Vizio FAST challenged cable with 15M users 2023
- Cox Communications 5M video customers 2023
- Traditional MVPDs 70% market share, vMVPD 15% in 2023
- Disney linear networks 18% cable share despite cuts 2023
- FuboTV reached 1.5M subs in 2023
- Broadband-only rivals gained 10% share from cable bundles 2023
- Warner Bros. Discovery cable nets 12% share 2023
- Paramount+ with Showtime vMVPD 2M live subs 2023
- Cable operators control 60% of US broadband market 2023
Competition and Market Share Interpretation
While cable still lords over the living room with its broadband moat and bundled relics, the peasants armed with streaming apps and free ad-supported TV are not just at the gates—they’ve stormed the palace and are now arguing over who gets the best sofa.
Content and Viewership
- Cable viewers spent 4.1 hours/day in 2023
- Live sports account for 40% of cable viewership in 2023
- News channels drew 25% of non-streaming TV time in 2023
- Top cable show (WWE Raw) averaged 1.6M viewers weekly 2023
- Cable primetime share fell to 28% in 2023
- ESPN averaged 500K viewers per game in 2023 NFL season
- Fox News topped cable ratings with 2.5M avg nightly in 2023
- Reality TV comprised 30% of cable original programming 2023
- Local news viewership on cable up 10% during elections 2023
- Cable kids programming down 50% viewership since 2015 to 2023
- MSNBC averaged 1.2M viewers in primetime 2023
- HGTV top non-news cable net with 800K avg viewers 2023
- Cable movies share 15% of viewing time in 2023
- CNN viewership dropped 20% YoY to 600K avg 2023
- Sports viewership on cable steady at 90% of live TV in 2023
- Cable share of total TV usage 35% in 2023
- 4K content availability on cable at 20% of channels 2023
- Cable FAST channels launched 50 new in 2023
Content and Viewership Interpretation
Cable television has stubbornly settled into a comfortable and lucrative retirement home, where its few remaining residents watch sports and politics with intense loyalty while the rest of the house slowly empties.
Cord-Cutting and Churn
- Cord-cutting caused 7M subscriber losses 2019-2023
- Monthly churn rate for cable averaged 1.8% in 2023
- 25 million households cut cord since 2014
- Virtual MVPDs gained 12M subs offsetting cable losses in 2023
- Cable churn peaked at 2.2% during 2022 recession fears
- 40% of millennials have cut the cord by 2023
- Streaming-only households rose to 41% in 2023 from 20% in 2019
- Cable retention costs rose 15% to $300 per sub saved in 2023
- Households with no pay-TV jumped to 35% in 2023
- Gen Z cord-cutting rate at 60% in 2023
- Over-the-air antenna use up 20% among cord-cutters in 2023
- Cable promotions extended avg contract to 24 months in 2023
- 55% of cord-cutters cite cost as primary reason in 2023 survey
- Annual cord-cutting losses slowed to 4M in 2023
- Streaming subs surpassed cable at 80M vs 70M in Q4 2023
- Cable win-back rate 15% via discounts in 2023
Cord-Cutting and Churn Interpretation
While cable desperately dangles discounts to save sinking ships, the streaming tide has already turned, and a whole generation is happily marooned on its shores.
Financial Performance
- Cable TV revenue reached $102 billion in 2022
- Average revenue per user (ARPU) for cable was $123/month in 2023
- Cable networks ad revenue fell 8% to $18B in 2023
- Comcast cable revenue was $57B in 2023
- Charter Communications revenue hit $54.6B in 2023
- Cable EBITDA margins averaged 40% in 2023
- Affiliate fees grew 4% to $28B for cable networks in 2023
- Cable capex spending was $12B industry-wide in 2023
- Residential cable revenue declined 2% YoY to $90B in 2023
- Cable MSO debt levels averaged $100B in 2023
- Programming costs rose 5% to $25B for top MSOs in 2023
- Cable ad spend share dropped to 15% of TV total in 2023
- Profit margins for cable operators at 35% in 2023
- Total pay-TV industry revenue $110B in 2023, cable 85%
- Cable bundle discounts saved customers $20/month avg in 2023
Financial Performance Interpretation
Despite squeezing customers for record-high monthly fees and boasting enviable profit margins, the cable industry now finds itself a cash-rich, debt-laden behemoth bleeding subscribers and ad revenue, clinging to relevance primarily by being the only game in town.
Subscriber Metrics
- In 2023, U.S. cable TV subscribers totaled approximately 69.9 million
- Cable penetration in U.S. households fell to 53% in 2023 from 80% in 2010
- Multichannel video programming distributor (MVPD) subscribers declined by 5.3 million in 2023
- Traditional cable/satellite households numbered 72.2 million at end of 2023
- Pay-TV penetration rate reached 55% in Q4 2023
- Cable-only subscribers dropped 4% year-over-year in 2023
- U.S. video households totaled 132 million in 2023, with 52% having cable
- Rural cable penetration stood at 65% in 2023
- Hispanic households had 60% cable subscription rate in 2023
- Cable subscribers aged 55+ comprised 45% of base in 2023
- Urban cable penetration was 48% in 2023
- Cable households with bundles (internet+TV) at 75% in 2023
- Total MVPD subs hit 105 million in early 2020s peak, now 90M
- Cable market share of pay-TV was 42% in 2023
- New cable subs added only 100K in 2023
Subscriber Metrics Interpretation
The cable industry is clinging to life like a determined, graying octogenarian on a treadmill, with 45% of its remaining subscribers eligible for AARP cards and new sign-ups barely filling a minor league ballpark.
Technological Shifts
- DOCSIS 4.0 upgrades in 20% of cable plants by 2023
- Cable 10G networks rolled out to 40% coverage 2023
- IPTV over cable hybrid in 30% households 2023
- Cloud DVR adoption at 70% cable subs 2023
- WiFi 6E in 25% cable gateways shipped 2023
- Low latency streaming trials on cable 10% coverage 2023
- Cable 5G fixed wireless partnerships in 15 markets 2023
- AI personalization in 50% cable STBs 2023
- Fiber overbuild affects 10% cable territories 2023
- Voice remote standard in 80% new cable boxes 2023
- Cable RPD speeds avg 1Gbps in 60% markets 2023
- Blockchain for content rights trialed by 5 MSOs 2023
- AR/VR cable apps launched on 10 channels 2023
- Edge computing nodes in 30% cable networks 2023
- Sustainable energy in 20% cable headends 2023
- Quantum-safe encryption pilots in cable 2023
- Multi-gigabit symmetric in 10% cable homes 2023
- Open RAN for cable backhaul tested 2023
- NFT collectibles tied to cable content 2023 pilots
- 8K trials on select cable systems 2023
Technological Shifts Interpretation
The cable industry is feverishly future-proofing with a kitchen-sink strategy in 2023, simultaneously patching its old coaxial arteries with fiber and 10G while also awkwardly waving blockchain and NFTs from the living room couch.
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