Monterey, Calif. – U.S. pay-TV services lost subscribers for
the first time ever during the second quarter of 2010, when cable, satellite
and telco-based TV services collectively lost 216,000 subscribers — compared
to a gain of 378,000 in the same period a year ago — according to a report
from SNL Kagan.

"Although it is tempting to point to over-the-top video as
a potential culprit, we believe economic factors such as low housing formation
and a high unemployment rate contributed to subscriber declines in the second
quarter," said SNL Kagan analyst Mariam Rondeli.

"We are also seeing
churn resulting from the broadcast digital transition, which boosted video
uptake early last year, as many have abandoned their paid subscriptions once
initial promotional contracts expired."

Cable TV providers suffered they
greatest hit, losing 711,000 subscribers during the quarter, while satellite
and telco services added 81,000 and 414,000 subscribers, respectively.

share of the total market also fell during the quarter, to 61% from 63.6% a
year ago, while telco TV services grew from 4.3% a year ago to take 6% of the
market in the second quarter.


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