1Q'26 Pay TV & Streaming Trackers

Research evidence excerpt

1Q'26 Pay TV & Streaming Trackers

Equity Research

Industry Update — June 8, 2026

Media

TV Broadcasting

Cable Multiple System Operators

Our Call Steven Cahall

We est 1Q'26 pay TV trends improved on linear packaging. This should benefit TV Equity Analyst | Wells Fargo Securities, LLC

Steven.Cahall@wellsfargo.com | 212-214-8240

B'casters, CMCSA, DIS & FOXA, but cable net operators could be worse off. In streaming,

Omar Mejiasshare is concentrated to NFLX+DIS & we think rev growth is increasingly from ads.

Equity Analyst | Wells Fargo Securities, LLC

Omar.Mejias@wellsfargo.com | 787-370-9353

Pay TV tracker. We est 1Q'26 ended with ~65mm pay TV subs, -4.9% y/y - a roughly Wojtek Majerczak

50bps improvement vs the last 2 quarters and ~200bps better vs 1Q'25. Linear sub Associate Equity Analyst | Wells Fargo Securities, LLC

trends improving are the key reason, though YTTV reaching ~10mm vMPVD subs late Wojtek.Majerczak@wellsfargo.com | 212-214-5480

last year likely means linear subs are better & vMVPDs are still growing (though more

slowly vs prior). Linear subs were -8.4% y/y vs -9.2% y/y in 4Q'25 and -10.7% y/y in 1Q'25.

Skinnier bundles focused on b'cast/sports are clearly having an impact.

Improved cord cutting outlook. We now forecast '26 pay TV sub declines of -5.4% y/

y, which compares to our prior est of -5.7% y/y and -5.5% for '25. We assume the out-

years will see modest annual improvements on the notion that the universe of potential

cord cutters is winnowing out, while the bundle remains the most convenient packaging

for sports. We expect future sub declines to hinge on NFL negotiations that could drive

higher renewal pricing passed through to consumer packages.

Implications for Media stocks. NXST, GTN, SBGI, and SSP are the biggest beneficiaries as