Leichtman Research: 82 Percent of TV Households Subscribe to Pay-TV

Leichtman Research Group, Inc. (LRG) has released new data on pay-TV penetration rates for television households in the U.S. The information was gleaned from a recent telephone survey of 1,206 U.S. households.

According to LRG, 82 percent of U.S. television households now subscribe to a form of pay-TV service.

As LRG explained, this is a 5 percent decrease from 2011, when Leichtman recorded an 87 percent penetration rate. The percentage of TV households that subscribe to pay-TV is on par with Leichtman’s 2005 findings.

Here are some more interesting statistics from LRG’s study:

  • Mean reported monthly spending on pay-TV service has climbed to $103.10. This is an increase of 4 percent from 2015. However, it’s also the lowest annual increase in five years.
  • 25 percent of people who have moved in the past year do not currently subscribe to pay-TV. According to Leichtman, this figure has increased from previous years.
  • 12 percent of pay-TV subscribers are likely to switch service providers in the next six months. This is a 1 percent increase from 2015.

“About 82% of households that use a TV currently subscribe to a pay-TV service. This is down from where it was five years ago, and similar to the penetration level eleven years ago,” stated Leichtman Research Group, Inc. president and principal analyst Bruce Leichtman. “The rates of those exiting the category, or intending to leave, are actually similar to recent years. The decline in penetration is also due to a lack of those who are coming into the category, and the industry not keeping pace with movers and related rental housing growth.”