vMVPD Channel Bloat Worsens With Hulu-Viacom Deal

  • 📰 Variety
  • ⏱ Reading Time:
  • 53 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 63%

United States Headlines News

United States Latest News,United States Headlines

Virtual MVPDs — services delivering broadcast and cable TV networks via the internet — continue to defy logic. Originally launched in 2015 amidst consumer clamor for à la carte cable TV, with Sling…

on the same day as the $10 increase in December. Hulu’s 2020 lineup actually shrank last year, removing Sinclair-owned regional sports networks in October.

This could mean that the latest price increase was made knowing a deal would soon be announced for ViacomCBS content. Given YouTube TV had to increase its fees by $15 after adding the same channels, a further increase could be expected in the coming months. The vMVPD business has proven to be tough to make a profit in. Operators have been willing to sit back and wait for their subscriber base to reach a scale that makes it profitable to deliver targeted ads, which carry a greater CPM rate.

The problem is that this takes time, and customers have had to be lured in with unsustainable deals where vMVPDs are spending more than their subscribers are paying. This is why Sony exited the market a year ago, and why AT&T TV Now has shed subscribers at an alarming rate as they sought to end promotional pricing.

Hulu is currently the market leader in the U.S., but this position would be at risk if prices rise again. One way around this would be to introduce service tiers, enhancing their current “Entertainment Add-On” offering.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 108. in US

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.