Battle for the American Couch Potato Report
Revenue from over-the-top TV service subscriptions increased 18% in 2024, Convergence Research found in its latest “Battle for the American Couch Potato” report, reaching $69.5 billion.
The company analyzed more than 90 services from more than 60 providers, with Netflix, Disney, Amazon and YouTube TV at the top of the pack. The information it collected goes beyond revenue and shows trends shaping the TV landscape.
The current environment
- Analysis of 10 of the top OTT platforms showed the average price in the US going up 14% last year, while ad-based plans reduced the cost by 42%.
- Cable, telecommunications and satellite TV accounts declined by 6.5 million last year, and TV subscriptions dropped 12% nationwide. Revenue fell 10%. Households without subscriptions made up 64% of US homes, for a total of 86 million.
- Broadband services added more than 1.7 million residential accounts in the US during 2024, a substantial decline from previous years, while revenue increased 5% to $95 billion. Cable maintained its dominance, though it’s trending downward due to market share gained by T-Mobile and Verizon.
TV trends beyond 2025
- For this year and beyond, Couch Potato analysts see a 17% OTT subscription revenue growth in 2025 to $81.5 billion, surpassing revenue from TV subscriptions in the US. Analysts forecast a comparable 14% price increase as in 2024.
- Telecommunications, satellite and cable subscriptions will continue to decline during 2025, though by only 5.6 million. Couch Potato predicts. However, the 12% loss rate will continue each year through 2027, and average revenue will keep falling 10% a year over the same time. By the time 2027 ends, analysts say, 76% of US homes won’t have traditional TV subscriptions.
- As for residential broadband, Couch Potato expects that subscriptions will rise slightly through 2027, although revenue growth will slightly drop.
Source: smartbrief.com