vMVPDs experience incredible growth within the US, and its not just younger generations who are watching
More cord-cutters and cord-nevers are looking to pure-play vMVPDs services for their daily intake of traditional-ish TV programming. While only used by a small percentage of US households, skinny bundle services like SlingTV, DirecTV Now, AT&T Watch, and Philo are rapidly gaining momentum.
In April 2018, 5 percent (4.9MM) of U.S. households with Wi-Fi internet streamed a pure-play vMVPD on their television screen — a 58 percent increase in households from the year before, according to a new report released by ComScore. On top of the increasing number of subscribers, those who use streaming TV services are spending more time on the platforms.
According to the report, pure-play vMVPDs comprised 10 percent of all time spent on OTT streaming in April – a notable 53 percent increase year-over-year. This means that nearly half of the time spent by OTT households with a vMVPD service is spent with the vMVPD itself.
And while Millennials may have led the pack in subscribing to OTT TV bundles, older folk are catching on. In April 2017, 29 percent of households using a pure-play vMVPD had a head of household under age 35. In just one year, that percentage dropped eight points to only 21 percent, indicating a higher number of older viewers are now using vMVPDs.
As time goes on, it’s expected that more and more consumers will cut the cord in favor for a skinnier, more affordable vMVPD. SlingTV may have started the trend when it launched its alternative TV bundle in 2015, but since then AT&T, YouTube, and Hulu have launched their own skinny bundles, creating more competition on the streaming market and more options among consumers. The growing number of streaming TV services has also led to the launch of even skinnier bundles looking to undercut larger packages by cutting out the fat that not everyone wants — like sports. Both Philo and AT&T recently launched OTT TV bundles, which exclude sports programming, by doing so they were able to offer the lowest prices on the market — $16/mo and $15/mo, respectively.