Julia Stoll
Research expert covering TV and video media
Online TV in the United States - statistics & facts
The United States remains one of the largest pay TV markets, yet the industry faces a significant shift as an increasingly number of viewers cancel subscriptions due to high prices and the ever-expanding selection of online video alternatives. And while pay TV is falling out of favor, the penetration rate of virtual multichannel video programming distributors (commonly abbreviated as vMVPD) and broadband-only TV in the U.S. have steadily increased over the past years.
The rise of online TV and vMVPDs is not just a passing phase but a fundamental change in the television industry. As traditional pay TV providers adapt to the new digital landscape, the success of vMVPDs like YouTube TV and Hulu indicates a clear consumer preference for streaming services.
Cutting the cord – turning to online options
Today’s U.S. online TV users are mostly from the younger generations, with nearly two in three adults aged 18 to 34 years using connected television devices on a daily basis in 2023. Their reasons for signing up for streaming video services are clear – content, convenience, and no or less ads are of high importance to these consumers. Online TV formats are gaining more and more enthusiasts, and the phenomenon of cord-cutting is seeing people turn to alternative methods to catch up with their favorite shows. In 2023, there were an estimated 60 percent of U.S. TV households without a traditional TV subscription and about 56 million non-pay TV households, a figure that is forecast to increase to over 70 million by 2026.Key players in the online TV industry
The U.S. vMVPD industry is led by YouTube TV, boasting around 7.9 million subscribers at the end of 2023. Similarly, YouTube TV provides the most channels, namely 78 as of February 2024, while the second most popular online TV service, Hulu, made 75 channels available on its platform. AT&T’s DirecTV Stream and FuboTV followed in the ranking. All four services provide major U.S. television networks, such as ABC, CBS, and Fox. Traditional pay TV subscribers have certainly moved to online TV channels, and also companies like Charter and Comcast are venturing into streaming to curb subscriber loss.The rise of online TV and vMVPDs is not just a passing phase but a fundamental change in the television industry. As traditional pay TV providers adapt to the new digital landscape, the success of vMVPDs like YouTube TV and Hulu indicates a clear consumer preference for streaming services.
