Neither Google nor Hulu’s owners have disclosed subscriber numbers for their live TV streaming services, yet Morgan Stanley says their success is assisting give media companies a lift amid wire TV “cord-cutting.”
XBenjamin Swinburne, a Morgan Stanley analyst, estimates in a note to clients that Hulu Live has some 250,000 online subscribers while YouTube TV has 400,000. Alphabet‘s (GOOGL) Google launched YouTube TV on Apr 5; Hulu Live started on May 3.
But obligatory pay-TV companies ATT (T) and Dish Network (DISH) have a many TV streaming subscribers and are adding to those numbers. Leichtman Research Group estimates that Dish’s Sling-branded web streaming use has 1.68 million subscribers, including 240,000 combined in a Sep quarter. ATT’s DirecTV Now use has 787,000 subscribers, including scarcely 300,000 combined in a third quarter.
“At a margin, new practical (streaming) adoption is a flourishing equivalent to normal declines,” Swinburne pronounced in a report.
ATT has bundled a DirecTV Now streaming use with wireless products. Satellite TV broadcaster Dish also has not disclosed subscriber numbers.
Cord-cutting, a tenure for consumers that cancel monthly pay-TV subscriptions, is still growing. LRG says a tip 6 wire companies mislaid about 290,000 video subscribers in a third entertain of 2017, compared with a detriment of about 90,000 subscribers a year earlier. Satellite TV services mislaid 475,000 subscribers vs. a benefit of about 5,000 subscribers a year earlier.
That’s bad news for providers of content. Media companies such as Walt Disney (DIS), Discovery Communications (DISCA) and Time Warner (TWX) hoard per-subscriber fees from pay-TV providers.
Morgan Stanley’s Swinburne, though, says media firms are removing a lift from a subscriber gains of Hulu Live, YouTube TV, Sling and DirecTV Now – even if per-subscriber income is reduce than compensate TV.
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Google on Oct. 30 launched a new TV app for YouTube’s streaming service, that could boost subscriber growth, analysts say.
Hulu’s relatives are 21st Century Fox Entertainment (FOXA), Disney, Comcast (CMCSA) and Time Warner. ATT is seeking regulators’ capitulation to acquire Time Warner.