Traditional Pay TV Penetration At 1995 Levels: vMVPD At Risk - Analyst - Deadline
The analysts estimate that there are now just over 79 million remaining traditional pay TV households - meaning penetration of occupied households in the U.S. has fallen to about 63%, a level previously around 1995.
Equally key, the vMVPD category, which initially emerged as a cheap alternative to traditional cable bundles, has collapsed, they said, estimating losses of around 341,000 subscribers last quarter. Generally, on a net basis, none of the 2 million or so traditional distributor losses landed with vMVPDs.
Price is a factor. It's been rising for these services from unsustainably low levels at launch. But MoffettNathanson suggested that, "A whole generation of customers likely viewed vMVPDs quizzically, as a solution to a problem they didn't have. The real issue was the grid. Not the user interface grid, by the way, but instead the very idea of a schedule. Why would anyone want to view entertainment content on a schedule, much less someone else's schedule?"