U.S. pay-TV subscriber levels have increased for the first time since 2017, according to a report highlighted by Deadline, citing research published by Wall Street research firm Moffett Nathanson. The third-quarter findings, part of the firm’s ongoing Cord-Cutting Monitor, show a net gain of 303,000 subscriptions across cable, satellite, and streaming packages compared to the prior quarter.
The report also notes that while the overall pay-TV market continues to decline, the rate of contraction has slowed. The third quarter saw a 5.8% decline, marking the third consecutive quarter of improvement in this metric. Although the report does not provide a total market size, industry estimates place it between 65 million and 70 million subscribers, significantly lower than the peak of over 100 million in 2012.
Bundling Strategy Drives Growth
Charter Communications, the largest pay-TV operator in the U.S., played a significant role in the positive trend. The company’s strategy of bundling streaming services from providers such as Disney, Warner Bros. Discovery, and NBCUniversal into its top-tier TV and broadband plans has been credited with improving its subscriber performance.
Craig Moffett, the report’s author, noted that these bundling deals have been transformative for Charter.
“Those deals have turned out to be game changers, and not only because they made the value proposition for Charter (Spectrum) subscribers so much better,” Moffett wrote, per the Deadline report. “Equally important is the fact that those deals made Charter believe in video again. Since Charter renewed its commitment to video, Charter’s quarterly subscriber losses have been cut by two-thirds. It was the improvement at Charter that made it possible for the growth at vMVPDs to put the whole industry into positive territory.”
Comcast, now the second-largest pay-TV operator, reported a loss of 257,000 subscribers during the quarter, with its overall subscriber base declining 10.3% year-over-year. Meanwhile, YouTube TV added an estimated 750,000 subscribers during the same period. However, this figure is lower than in previous third quarters, which Moffett attributed to a price increase earlier this year. He also acknowledged some uncertainty in his YouTube TV estimates, noting that the actual growth could be higher.
What It Means for Integrators
For custom integrators, the moderating decline in pay-TV suggests a steadier content landscape than in recent years. Many homeowners are still maintaining hybrid setups that combine linear TV with multiple streaming services, especially as live sports, revamped bundles, and vMVPD growth help stabilize subscriber levels. Another issue we’ve been tracking is the fragmented streaming landscape, especially when it comes to live sports. Pay-TV packages maybe be easier for some users when trying to find games.
This creates ongoing demand for reliable video distribution, strong home networking, and system designs that accommodate a mix of sources rather than an all-streaming future. At the same time, media companies’ restructuring of linear assets—and shifting rights agreements—may continue to influence channel lineups, app performance, and device requirements, all of which can affect installed systems.
While pay-TV won’t return to past highs, the latest data points to a more predictable environment where integrators can guide clients through evolving services and ensure their entertainment ecosystems remain seamless.
