The pay TV business has been in secular decline for years, with multi-channel video packages from cable and satellite companies (MVPDs) showing continued erosion.
But even amid subscriber churn in pay TV, the streaming-focused virtual multichannel video providers (vMVPD) — think YouTube tv and hulu‘s live TV level – continuing to increase its market share, with the two leading players in the space seemingly breaking away from the pack.
On July 12, YouTube released new data showing that the major vMVPDs now have a combined 12.4 million subscribers, barely 20 percent of the active pay TV universe, and are well positioned to be the only area where pay TV could grow, thanks to their streamlined user interfaces, easy mobility between devices, and seamless login and cancellation processes.
While vMVPDs share many of the same channels as traditional MVPDs (CNN, Food Network, USA, ESPN, etc.), the experience is vastly different (think cloud DVRs, which allow users to record as many programs as they want, or overlays that about fantasy sports on top of live games).
YouTube revealed that its YouTube TV service reached 5 million subscribers, 5 years after its launch. With the caveat that the 5 million figure also includes those of free trials, YouTube TV’s latest figures are its top online rivals, such as Hulu’s 4.1 million subscribers at live TV tiers of (Disney-owned) and the 2. 25 million from Sling TV (from the Dish), according to those companies. latest earnings reports.
But while Sling has seen its subscriber base stagnate (there were 2.5 million in late 2020 and 2021, 2.6 million in 2019, and 2.4 million in 2018), YouTube TV and Hulu With Live TV seem consistent over time. subscribers (Youtube TV has added some 2 million subscribers since the end of 2020, the last time the number broke, while Hulu With Live TV was up 8 percent last quarter from a year ago).
There are other players in the space, but so far they play in specific niches, compared to Hulu and YouTube’s broad approach (think Edgar Bronfman Jr.-led FuboTV, with its sports focus, or Philo TV and its less expensive entertainment push). The exception is DirecTV — now free from AT&T — which is pursuing an aggressive streaming push, though specific numbers remain unclear. Before it started shielding its streaming subscriber numbers, DirecTV was on the same fringe as Dish’s Sling TV.
The space seems to be moving to a point where Disney and Google, both of which have other streaming platforms in their stable (Disney+, the primary YouTube service, respectively) dominate, while the satellite companies and niche players battle it out for the remaining scraps.
According to Leichtman Research Group, the major pay-TV providers lost 1.95 million subscribers in the first quarter of 2022, compared to 1.91 million a year ago and 1.96 million in 2020. now together 66.7 million subscribers. subscribers.
However, that does not mean that a service rests on its laurels. As a pure-play content company, DirecTV now has a strong incentive to bolster its streaming ambitions, while Philo launched a new brand campaign on July 12 called “Chaneling Comfort” to try to steal market share by emphasizing ease of use and lower price.
In fact, price is a key factor in the battle against the streaming bundle, and it’s one area that gives YouTube another leg up on its Hulu competition: At $64.99 a month, the subscription is cheaper than Hulu’s live TV tier, which Costs $69.99 per month. month.
As for the other options, Philo TV starts at $25 per month, Sling TV starts at $35 per month (each with a much smaller channel selection), while FuboTV and DirecTV streaming start at $69.99 per month, in line with hulu.
And if the vMVPDs can continue to grow while the legacy players continue to decline, the streaming future of pay TV could come even faster than people might think.
A version of this story appeared in the July 15 issue of The Hollywood Reporter. Click here to subscribe.