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State of the Screens

Here’s Why Skinny TV is Still an Experiment for Companies

By March 22, 2018No Comments

Skinny bundles are the rage. One way to look at this is that 5 new national cable providers have launched in the past 2 years with a starting price under$40 compared to an average cable bill of $103.

Basic package cost by streaming cable provider:
Hulu Live — $40
DirecTV Now — $35
Sling TV — $20
PlayStation Vue — $40
YouTube TV — $35

Fox News has the highest prime time ratings on cable (2.5m) and costs the average cable subscriber $1.55/month. ESPN averages 1.9m in primetime and costs $7.86. The average cable subscriber pays 5X more per month for a channel that they are 30% less likely to watch.

What happens when the cable news channels start asking for highly monthly fees based on their increased ratings?

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.