BTIG's Greenfield Fears vMVPD Sub Slowdown Threatens Video Distribution Model
The rise of vMVPDs over the past four years “helped mute the pressure” on TV networks from cord-cutting, but a slowdown in vMVPD subscriptions is clouding the future, BTIG's Rich Greenfield wrote investors Monday: Low retail pricing resulted in negative…
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gross margins given how programmers “force large bundles of their channels on both MVPDs and vMVPDs.” Two of the top four vMVPDs are reversing course: Dish Network's Sling growth “slowed dramatically over the past year” and AT&T's DirecTV Now lost 14 percent of its subscriber base last quarter, the analyst noted. Growth is continuing at Hulu Live and YouTube TV, but Greenfield questioned how Disney’s expected acquisition of much of 21st Century Fox in the next few weeks could affect Hulu Live. Disney has a stake in Hulu, as do Fox and others. “That leaves YouTube TV, which has best-in-class technology, a superior user experience and a deep-pocketed parent that can sustain losses for years-to-come,” Greenfield said of the Google affiliate. Greenfield questioned why distributors don’t partner with YouTube TV. Verizon did so tied to its 5G launch. DirecTV Now reportedly is rolling out a $10 price hike and two new packages that remove AMC, Discovery, Scripps and Viacom-owned networks. DirecTV didn’t comment.