vMVPD (Virtual Multichannel Video Programming Distributor)
by The MNTN Team
7 Min Read
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7 Min Read
As a marketer, successfully reaching your target audience and delivering impactful content means you must familiarize yourself with the video distribution channels at your disposal. Among these, multichannel video programming distributors (MVPDs) represent some of the largest sources of video ad slots.
Below is a closer look at MVPDs, including what they are, as well as the advantages and disadvantages of them as content distribution models.
A multichannel video programming distributor is a service provider that delivers multiple television channels to consumers through delivery methods like:
Traditional MVPDs include cable operators like Comcast Xfinity and satellite providers like DirecTV. These services offer subscribers access to a wide array of channels, including local broadcasts and premium content, that are often bundled into different packages and pricing tiers.
The wide availability of high-speed internet and consumer preferences for more affordable services have led to a new category of multichannel distribution: virtual multichannel video programming distributors (vMVPDs).
These platforms, which include the likes of Hulu + Live TV and YouTube TV, provide similar multichannel television services but deliver their content over the Internet instead of traditional cable or satellite systems.
Additionally, vMVPD providers typically include on-demand content as part of their channel packages. For instance, Hulu + Live TV packages allow users to watch live TV in addition to streaming their favorite movies and shows on demand. That flexibility provides consumers with greater value and the freedom to watch content on their own terms.
The most common types of MVPDs are cable and satellite providers, which use the following infrastructure to transmit content by way of television signals:
Consumers will typically receive a set-top box that decodes these signals and grants them access to the channels they subscribe to. Some boxes include additional features, such as digital video recorder (DVR) capabilities.
Multichannel video programming distributors remain a popular option for millions of subscribers because they provide the following benefits:
MVPDs typically offer several different subscription packages, allowing consumers to choose the bundle that provides the best value and combination of channels. Bundles may comprise dozens or even hundreds of different channels, typically including local stations, news, entertainment, and premium channels. Some providers have pay-per-view (PPV) preview channels built into their packages, as well.
Avid sports fans often favor MVPDs because they provide access to live sports and similar events. These offerings were initially exclusive to certain networks available through MVPDs. However, many networks now display live sports events on their streaming apps, as well as MVPD-based channels. It’s a trend that has eroded the live sports monopoly that traditional multichannel video programming distributors once held.
Long-standing MVPDs generally deliver consistent, high-quality broadcasts with minimal buffering or interruptions. Conversely, internet-based video distributors may experience image quality issues during periods of peak demand. (Of course, satellite-based MVPDs are not immune to disruptions, either, and can experience some interruptions during rain or inclement weather.)
Multichannel video programming distribution is far from perfect. Some of its shortcomings include:
MVPDs typically offer multiple packages. However, even their lowest subscription tiers tend to be more expensive than comparable streaming services. Many packages also include hundreds of channels, which can cause some customers to feel as though they are paying for channels that they will never watch.
Traditional MVPDs struggle to match the flexibility of streaming services, which allow for on-demand viewing and portability across devices. Additionally, streaming platforms usually offer month-to-month subscriptions, which means that consumers can cancel their subscriptions at any time.
Conversely, MVPDs usually require one- or two-year contracts that include equipment fees. Additionally, many bundle internet and TV services, which can make subscribers feel trapped in their contracts, especially if there aren’t any other high-speed internet providers in their area.
For decades, multichannel video programming distributors represented the gold standard in TV-based entertainment. However, subscription video on demand (SVOD), advertising-based video on demand (AVOD), and vMVPDs provide consumers with more flexible and cost-effective options.
As a result, multichannel video programming distributors are contending with severe churn. More than 20 million U.S. consumers have canceled their MVPD subscriptions since 2014, and by 2026, it is expected that 80 million U.S. households will have “cut the cord” with their cable or satellite providers. What’s even more telling is that 52% of consumers who have already ditched MVPD say that they don’t miss anything about cable.
A few of the most well-known multichannel video programming distributors in the United States are as follows:
Charter Communications operates under the Spectrum brand, offering cable, high-speed internet, and mobile phone services to approximately 32 million customers. However, only 13.3 million of that total are pay TV subscribers.
Time Warner was acquired by Charter Communications in 2016, and it is what has now become Spectrum. While the acquisition expanded Charter’s service footprint, it hasn’t done much to slow the churn impacting all MVPDs.
CenturyLink offers satellite-based internet and television services, primarily focusing on rural and suburban areas across the country.
Cox Communications offers cable, internet, and home telephone services to approximately 6.5 million commercial and residential customers across the United States.
Comcast Xfinity remains one of the largest MVPDs in the United States with over 32 million total subscribers. However, it has been losing TV and video customers at a rapid pace. Comcast had nearly 20 million TV subscribers in Q4 of 2020, but by Q3 of 2024, that figure dropped to 12.8 million, a loss of almost seven million in just four years.
MVPDs offer advertisers access to traditional and digital TV audiences—but MNTN Performance TV takes it further by combining premium Connected TV inventory with advanced targeting and real-time measurement. With MNTN, you can reach high-intent audiences across 150+ top streaming networks while ensuring full transparency and performance tracking.
With MNTN, you get:
Go beyond MVPD advertising and make Connected TV a key performance channel with MNTN. Launch your campaign today.
Multichannel video programming distributors may have played an instrumental role in shaping television consumption by providing diverse content through structured channel packages, but internet-based alternatives simply do a better job at meeting the preferences and budget concerns of today’s consumers.
Businesses that rely on MVPD-based marketing tactics should, therefore, begin shifting toward a digital-first approach that prioritizes vMVPD and AVOD advertising campaigns. These modern alternatives will provide you with more control over your budget, target audience, and campaign scope.
Discover how Performance TV delivers revenue, conversions and more through the power of Connected TV. Request a demo today to speak to an expert.