Nineteen percent of U.S. broadband households use a service from a virtual multichannel video programming distributor (vMVPD), according to Parks Associates. vMVPDs offer live pay-TV channel line ups delivered on apps via the Internet.
Popular vMVPDs include Sling TV, YouTube TV, and Hulu Live. Set-top-boxes (STBs) used for traditional pay-TV service are not necessary with vMVPD services. Pricing for these services has been somewhat lower than pay-TV, but the gap is closing quickly as vMVPDs are raising prices.
According to this Parks research, growth for the category has accelerated. In March 2017, less than 10% of broadband homes used this approach. That percentage ticked upward slightly to about 10% in March, 2018 and remained at about the same point a year later. However, it jumped to almost 15% last year before reaching 19% this March.
“Many households who cut the traditional pay-TV cord or never subscribed in the first place are looking for a live and more linear video viewing experience via online options, which is driving vMVPD service uptake,” Parks Associates’ Senior Analyst Paul Erickson said in a press release. “These services also promise less costly investment and more content flexibility, which increases the appeal among today’s video viewers, who are accustomed to the benefits of OTT solutions.”