Virtual MVPDs have lost their pricing and packaging edge – analystVirtual MVPDs have lost their pricing and packaging edge – analyst
Escalating prices and the re-creation of big TV channel bundles will hinder consumer adoption of OTT-TV packages and not adequately stem traditional pay-TV cord-cutting, analyst says.
July 13, 2020

Virtual MVPDs are also facing another battle – with subscription and free, ad-supported VoD services – that go well beyond their ability to convert customers who have cut the cord on traditional pay-TV. Those conversation rates are falling fast – from about 77% in 2018 when prices were much lower, to below 40% in 2019. Nathanson expects that conversion rate to normalize below 30% following a tough 2020 for pay-TV that's seen higher prices being amplified by the temporary loss of live televised sports."The continual price hikes by the virtual MVPDs will likely only accentuate the shift to alternative OTT offerings," Nathanson notes.He believes a path forward for vMVPDs with slender margins is to concentrate on advertising growth aided by ad targeting and more advanced, data-driven ad-tech systems. He estimates that most cable companies generate monthly advertising revenues per user in the $8 to $9 range.Related posts:
YouTube TV hikes price by $15 per monthAT&T, fuboTV join the pay-TV price hike partyfuboTV sees subs and revenues climb in Q1FuboTV gets the urge to merge with FaceBank GroupUS pay-TV losses rocket to 2.15M subs in Q1 as virtual MVPD market unraveledRIP PlayStation VueSchlichting out, Schwimmer in as Sling TV's top bossPandemic just one of big problems plaguing pay-TV, Dish's Ergen says— Jeff Baumgartner, Senior Editor, Light Reading
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