Multichannel video has long been the domain of cable, satellite, and IPTV providers who own the facilities (i.e., networks) over which they deliver television programming; however, the growth of broadband and connected devices has led to the emergence of a new type of MVPD – the virtual MVPD (vMVPD).
In the past, when new competitors entered the pay TV market (i.e., Dish Network – 1981, DIRECTV – 1985, Verizon FiOS – 2005, AT&T U-verse – 2006) they sought to emulate the status quo not disrupt it, carving out a place within the existing system. This is not the case with virtual MVPDs. Their path to success lies in disruption not emulation, seeking to tap into consumer dissatisfaction with high priced, bloated pay TV bundles by offering a combination of lower prices and greater choice than incumbent pay TV providers.
This Report focus on the opportunities and obstacles related to the growth of vMVPDs and how various services are positioned in the market.
Table of Contents
1. Executive Summary
2. Introduction
3. Impact on the Pay TV Market
3.1 U.S.
3.2 U.K.
4.1 Opportunity
4.2 Threats
4.3 Strengths
4.4 Weakness
5. Competitive Positioning
6. vMVPD Revenues
6.1 U.S.
6.2 U.K.
7. Conclusions
Exhibit 1: Top vMVPDs by Subscriber
Exhibit 2: Share of U.S. TV Households by Service Type
Exhibit 3: Share of U.K. TV Households by Service Type
Exhibit 4: SWOT Analysis – vMVPDs
Exhibit 5: Bandwidth Caps by Provider
Exhibit 6: Price Comparison – vMVPDs vs. Traditional Pay TV Providers
Exhibit 7: Cost Saving Over a 2 Two Year Period
Exhibit 8: Now TV Bundles
Exhibit 9: Channel Line-up Comparison
Exhibit 10: T-Mobile – Embracing the Role of Disruptor Brand
Exhibit 11: vMVPD Competitive Positioning
Exhibit 12: U.S. vMVPD Revenue (2015 – 2017)
Exhibit 13: U.S. vMVPD Revenue Growth Scenarios
Exhibit 14: U.K. vMVPD Revenue (2015 – 2017)