Viasat Reports Sharp Decline in Subscribers Amid Growing Competition from Starlink

Viasat has reported a significant drop in its U.S. subscriber base, now down to 257,000, as competition from Elon Musk’s Starlink intensifies. This marks a steep decline from the 603,000 subscribers Viasat had before Starlink's launch in 2020, highlighting the competitive pressure in the satellite internet market.

Viasat’s U.S. Subscriber Base Drops 57% Since Starlink's Launch, Falling to 257,000 Subscribers

Since the public beta of Elon Musk's satellite internet service began in November 2020, Viasat, a competitor of Starlink, has experienced a significant decrease in its subscriber base. In a letter to shareholders published this week, Viasat disclosed its current subscriber base in the United States.

The fixed broadband division of Viasat concluded the quarter with approximately 257,000 subscribers in the United States, as indicated in the company's letter. Viasat observed that each subscriber's average revenue per user is approximately $115. This figure is not negligible; however, it indicates a substantial decline from Viasat's prior figures before Starlink's arrival.

In September 2020, Viasat reported (via Teslarati) that it had 603,000 subscribers in the United States, just a few months before the public initial launch of Starlink. By May 2021, Viasat observed that its subscriber base had decreased to 590,000, just a few months after Starlink began providing its services. Viasat has lost subscribers over the years, as evidenced by its most recent shareholder letter.

Viasat and HughesNet Face Subscriber Losses as Starlink Dominates, But Growth Shows Signs of Slowing

Viasat is not by itself in its current situation. HughesNet, an additional provider of satellite internet services in the United States, disclosed in March that it had lost more than 200,000 subscribers last year, and its subscriber base decreased to approximately one million. HughesNet had 1.56 customers in the United States as of December 2020.

While Starlink is presently the dominant player in the rural internet market of the United States, its growth has experienced a slight decline. Starlink currently has over 1.4 million customers in the United States, a relatively small increase from the 1.3 million customers it had in December 2023. However, Starlink still has a substantial user base to access in the United States, given that HughesNet has 1 million customers and Viasat has approximately 257,000 subscribers remaining.

Starlink is intended to establish internet connectivity in even the most isolated regions globally. However, as evidenced by the United States, Starlink may soon be required to devise a strategy to attract consumers who reside in areas already oversaturated with fiber internet services. It is improbable that Starlink will remain complacent in the wake of its success in the rural internet segment of the United States.