Report: 44% of vMVPD Homes Switched from Traditional Pay-TV
18-44 year olds account for 65% of vMVPD subscriptions, per Leichtman Research Group
DURHAM, N.H.—Homes that subscribe to vMVPD services—like YouTube TV, Hulu Live+ TV or AT&T TV Now—came over from traditional pay-TV services about half the time, according to a new report from Leichtman Research Group.
LRG’s study, “Internet-Delivered Pay-TV Services 2020,” showed that 44% of current vMVPD subscribers had switched directly from a traditional pay-TV service. Among others who switched subscriptions, 18% came from another vMVPD and 12% had most recently been non-subscribers to any pay-TV service. For 26% of vMVPD subscribers, they still subscribe to a traditional pay-TV service.
A majority of vMVPD subscribers (65%) fall between the ages of 18 and 44. According to LRG, 18% of 18-44 year olds overall have a vMVPD service; that falls to 9% for ages 45 and above.
Other findings from the report revealed that 76% of vMVPD subscribers are “very satisfied” with their service, which is up from 69% in 2018. Only 14% said they are very likely to switch from a vMVPD service in the next six months.
Of those that have both a vMVPD and traditional pay-TV service, 42% cite having more options as the top reason for subscribing to both; 15% cite serving multiple people or TVs in the home, 14% cite channels or content only available from one type and 8% cite testing or trialing a service.
In addition, vMVPD users are more likely to have additional streaming options. LRG found that 95% of vMVPD subscribers also subscribe to a SVOD (Netflix, Amazon Prime, Hulu) service, compared to 74% of traditional pay-TV subscribers and 77% of non-subscribers. Overall, 79% of all households have at least one SVOD or DTC streaming video service; 44% have three or more.
“More than ever, consumers are exploring the trade-offs between traditional and vMVPD pay-TV services—along with an increasing number of streaming options—to find the combination of content and cost that best meets their needs,” said Bruce Leichtman, president and principal analyst for LRG. “Younger adults and those with more people and TVs in the household have thus far proven to be most attracted to the lower-cost and lower-channel vMVPD options.”
For more information, visit www.leichtmanresearch.com.
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