vMVPDs are coming to a fork in the road: raise prices, lose money or offer smaller packages
When Dish launched the first vMVPD service in 2015, the idea was that a smaller and thereby cheaper package would help keep its customers -- who were (and still are) leaving its satellite service in droves -- within the Dish umbrella. Soon after, DirecTV, Hulu and YouTube also launched their own “skinny bundles” of networks with streamable content. However, these companies are realizing that’s not easy to make a profit from such services.
The key reason many vMVPDs are hemorrhaging money: carriage fees from networks and other content providers.
YouTube TV pays networks a total of around $49 per month for each subscriber to its basic $40...
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