Kagan Sees Big Growth Opportunities, Challenges for Virtual MVPDs
Sling TV and DirecTV Now subscriber gains, plus new virtual MVPD services like Hulu with Live TV and YouTube TV, should drive virtual MVPD revenue from an estimated $2.82 billion this year to more than $7.77 billion by 2022, Kagan…
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said Wednesday. It said the virtual MVPD market, though new, should succeed through its presentation of alternatives to traditional MVPDs. That shift to virtual MVPDs has "significant revenue implications" given the sizably lower average revenue per user rates the virtuals charge, it said. Legacy MVPDs could revisit skinny bundles at competitive prices, using their existing customer relationships to undercut virtual providers, it said.