New data suggests that over-the-top (OTT) TV operators like Sling TV, Hulu TV, and YouTube TV are making double the revenue per channel than that of providers such as Direct TV, DISH, Verizon, and Comcast.
According to the study, which was conducted by Ampere Analysis, traditional pay TV operators make an average of $0.23 per subscriber a month in gross revenue for each channel carried, with revenues per channel consistently falling within a range of $0.15 to $0.30. On the other hand, OTT TV providers, which the study labels as vMSOs (virtual Multiple Systems Operators), make nearly double at $0.59 per channel.
“US pay TV operators have needed to balance carriage fees and revenue for a long time,” explains Guy Bisson, Research Director at Ampere Analysis. “However, with the increasing migration of pay TV subscribers to OTT services, that balancing act is only set to become more precarious. Despite the fees they are charged to include US networks in their streaming packages, vMSOs have made a better job of reconciling the carriage fees versus revenues per channel equation.”
According to Bisson, the shift to streaming and rise of OTT TV looks like a potentially strong plus for channels — “providing they have strong enough brands to make the cut.”