The average spending rate for the viewing services has risen from approximately $8 in 2018 to $16 in 2020. 45% of a traditional pay-TV report are likely to switch to a virtual multichannel video programming distributor within the next 12 months.
A recent Parks Associates study revealed that US broadband households spent an average of $16 per month on OTT services in early 2020. The figure doubles the $8 monthly average from 2018.“The vMVPD universe is evolving faster than ever before and its evolution was hyper-accelerated in 2020 by the pandemic and our greater dependence on home entertainment,” said Mike McClain, CFO of Frndly TV.
The research firm report also indicates that 45% of a traditional pay-TV report are likely to switch to a virtual multichannel video programming distributor (vMVPD) within the next year. “Today’s video services market is in a historic state of disruption and disarray,” said Paul Erickson, Senior Analyst, Parks Associates. “Our Q3 2020 survey finds 29% of current subscribers to traditional pay-TV are unhappy with the price and value of their service, and vMVPDs are seeking to address that need with a variety of different bundles and value propositions.”
The firm's virtual event, "Future of Video" covers the value of digital content in driving and retaining subscribers as well as technology innovations that market, measure, and track video viewing and strategies related to the field.“We saw an unprecedented acceleration of consumer interest in aggregators and vMVPDs in 2020, and there’s still a lot of room to grow viewership - especially through exceptional content discovery, 47% of viewers still turn to traditional pay-TV to find their next show, compared to 18% for vMVPDs,” said Nic Wilson, Head of Customer Success, TiVo.
“Evolution of vMVPDs: Finding Success” addresses the opportunities for vMVPDs to dominate the pay-tv landscape, including the drivers and inhibitors to growth. The session features visionary speaker Shane Cannon, President & Co-founder, VIDGO, followed by a question and answer session with Michael McClain, Co-Founder and CFO, Frndly TV, and then a panel with various media experts.
The vMVPD universe is evolving faster than ever before and its evolution was hyper-accelerated in 2020 by the pandemic and our greater dependence on home entertainment.” Mike McClain CFO, Frndly TV