Subscription revenue for streaming TV services is expected to grow 17% to $69 billion in 2024, according to Convergence Research’s latest Couch Potato Report.

The report projects double-digit growth for subscription revenue continuing through at least 2026. But as revenue is going up, growth in the number of net subscribers signing up for service is going down. 

The report expects subscriptions added per year will average 40% less from 2024 to 2026 than it did from 2021 to 2023, with growth rates in the single-digit range.

Also Read: OTT Revenue in U.S. Rose 26% to $49.6 Billion in 2022

With media companies focusing on reducing streaming losses and producing profits, subscription prices have gone up.

Averaged across the Top 10 OTT providers, the average price increase was 11% in 2023 and the report expects a similar increase for 2024.

Accepting a streaming package that includes commercials can save a consumer 45% on fees, the report said.

On the traditional side of the media business, the report said that pay TV lost 7.76 million subscribers in 2023, with another 7.1 million in losses projected for 2024. The rate of loss is accelerating from 12% in 2023 to 13% in 2024 and 15% in 2026.

Pay TV revenue fell 10% to $77.6 billion in 2023. The report forecasts an 11% decline in 2024 and a 13% drop in 2026.

The number of homes with broadband increased by 3.7 million in 2023, and revenue grew 6% to $90 billion.

“While cable continues to maintain the lion’s share of residential broadband subs, cable’s annual share of net additions has fallen precipitously due primarily to T-Mobile and Verizon,” the report said.

Time Warner, preparing for its acquisition by AT&T, said its second-quarter profit was up 11% as subscription revenue rose at Turner and HBO.

Net income rose 10% to $1.06 billion, or $1.34 per share, from $952 million, or $1.20 per share, a year ago. Revenue rose 5% to $7.3 billion.

The results topped Wall Street forecasts.

Time Warner said it continues to expect the AT&T deal to close before the end of this year. The company also reaffirmed its full-year earning guidance.

At Turner, revenue rose 3% to $3.1 billion. Subscription revenue was up 13%. Operating income was down 7% to $1.1 billion because of higher expenses. Programming costs were up 12% mostly because of the new licensing deal with the NBA.

Turner's advertising revenue was down 6%, and content revenue was down 8%. The company said not having the NCAA Championship and Final Four games this year cost it 8% worth of ad revenue. It also had two fewer NBA playoff games and lower ratings at its domestic entertainment networks. Ad revenue increased at CNN and Turner’s international networks.

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At HBO, operating income increased 10% to $531 million as programming costs declined 3%. Revenue rose 1%, with subscription revenue up 8%, while content and other revenue was down 44%.

“We’re very pleased with our first-half results, which keep us on track to achieve our objectives for the year,” said CEO Jeff Bewkes. “Our performance is a result of the continued successful execution of our strategic objectives – with the strong subscription revenue growth at Home Box Office and Turner a great example of this – along with the investments we’re making in our brands and high-quality video content.”

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Warner Bros. operating income was down 28% to $233 million from last year when Flixster was sold. Adjusted operating income was up 20% to $261 million. Revenue rose 12% to $3 billion as higher theatrical revenues were partly offset by lower TV revenue.

Bewkes noted the box office numbers for the films Wonder Woman and Dunkirk, and the Emmy award nominations earned by HBO and Warner Bros.

“These results and accolades reflect strong execution and the investments we’ve been making, both in the best content and in ensuring that we deliver our content across platforms to offer engaging experiences for our audiences,” he said. “Accelerating our pace of innovation and being able to connect more directly with consumers are among the exciting reasons for our proposed merger with AT&T, which remains on track to close before year-end, pending regulatory review and consents.”