Virtual Multichannel Video Programming Distributors (vMVPDs) are shifting their focus from customer acquisition to profitability.
YouTube TV has become the latest vMVPD service to hike its prices, joining others like HULU + Live TV, Sling and AT&T TV now. The Google-owned service is now pegged at $64.99 a month, almost double from its initial price when it was launched three years ago.
Christian Oestlien, YouTube TV’s vice president of product management, said,“…this new price reflects the rising cost of content and we also believe it reflects the complete value of YouTube TV.” The provider recently signed a deal with ViacomCBS and brought 14 cable networks in its ambit.
This piece contends that economic uncertainty might increase the appeal of vMVPD services, as they are cheaper than traditional television packages. But, the increased prices may also undercut their original appeal of being a low-cost alternative.
[2 minute read]