Cord-Cutting Q3: How the NFL boosted pay TV
The third quarter has always seen high positive churn rates for reporting VMVPDs, most notably for sports-oriented FuboTV. Given this period has the start of the NFL season — and the strong uptick in viewership this year — it's safe to assume the NFL has a big hand in softening the overall decline. It’s worth noting that this was theAs noted, FuboTV sees a big spike in subscribers each Q3, but 2021 saw the greatest growth by far.
The downside to this for the TV industry is it demonstrates that for some consumers, TV service is now seasonal, with streaming better serving the overall needs of a growing swath of the market. Equally, the flexibility of VMVPDs — no 12-month contracts — helps to attract those seasonal consumers to their offerings rather than traditional MVPDs.
This has led to some providers diversifying their offerings. Broadband subscriptions from MVPD providers substantially outnumber those for traditional MVPD service, with VIP+ estimating that by the end of 2022, there will be twice as many broadband subscribers than pay TV subs across Altice, Charter, Comcast and Verizon.
Mobile is another area providers are getting into, as they look to own the streaming pipe whether in or out of home. Within the last few years, Altice, Charter and Comcast have launched their own mobile plans for subscribers, with Dish getting into the game, too, with itsWhile revenues are currently moderate relative to other MVPD streams, mobile will increase in importance in the coming years as service providers look to gain as much of a share of advertising in the new world as possible.
There will come a point where broadband subscriptions reach their finite zenith and will not be able to paper over the growing revenue cracks for MVPD providers. Mobile and CTV offer new ways to monetize the subscriber base, and more innovations are to be anticipated.
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