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State of the Screens

vMVPDs alone no threat to pay TV

By February 22, 2018No Comments

Some industry analysts are saying that streaming services (Sling, YouTube TV, etc) are no threat to traditional pay TV.

What is a vMVPD? Similar to traditional pay-TV, but delivered over the internet and can be purchased separately from broadband. Think getting your TV channels from YouTube TV and your internet from Comcast.

Why do they believe this? A large part of this belief is that consumers will repackage a large enough share of their current channels (ESPN, Fox News, etc.) to drive the cost above what they are currently paying.

Why might this be wrong? If given the choice, then consumers are not going to pay for channels that they do not intend to watch. For example, a non-sports fan will most likely not pay $8/month for a sports channel.

A quick reminder. The cable companies are charging non-pay TV customers 35% more for broadband access than those that buy a package.

Previously on SOTS. Comcast Debuts ‘Xfinity Instant TV’ Skinny Bundle for Broadband-Only Users

The streaming wars (monthly cost):
1) Hulu Live — $40
2) DirecTV Now — $35
3) Sling TV — $20
4) PlayStation Vue — $40
5) YouTube TV — $35
6) Verizon — TBD
7) Charter — $20
8) CenturyLink — $15
9) Comcast Instant TV — $18

More on this topic. Verizon Blames Pay-TV Loss in Q3 on Cord-Cutting, Sees Delay on OTT Plans

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.