MVPD (Multichannel Video Programming Distributor)
by The MNTN Team
7 Min Read
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7 Min Read
The streaming landscape is filled with different ways for viewers to watch their favorite TV and video content. But with all the differences between them (not to mention the endless list of acronyms), it can be hard to keep them all straight.
One particular medium you need to be aware of involves virtual multichannel video programming distributors (vMVPDs). Here’s a look at what vMVPDs are, as well as the pros and cons of virtual video distribution.
A virtual multichannel video programming distributor provides consumers with on-demand video and live TV content via the Internet.
Some providers started as traditional MVPDs but later added live TV streaming and on-demand services. Others, like YouTube, began as ad-supported video-on-demand platforms before transitioning to hybrid models that include live TV options.
A multichannel video programming distributor is a traditional cable or satellite provider, such as DirecTV or Spectrum. An MVPD offers consumers access to different channel packages via recurring monthly subscriptions, and many also provide on-demand or pay-per-view (PPV) content options.
The major downsides to traditional MVPDs, however, include hefty equipment and subscription fees and that they often lock users into annual or two-year contracts.
The big difference between MVPDs and vMVPDs is that vMVPDs deliver content via the internet instead of physical infrastructure like cables, satellites, and set-top boxes — hence the “virtual” addition. They also offer monthly or annual subscription options without locking users into restrictive contracts.
Virtual multichannel video programming distributors serve as middlemen between TV networks and consumers. Viewers purchase a subscription to the vMVPD platform of their choice and gain access to a bundle of live TV channels. Many vMVPD providers mimic the tier-based systems used by traditional cable companies, allowing users to choose the package that best fits their viewing preferences.
Virtual MVPDs differ, however, in that they typically include ad-supported or subscription streaming services as part of their membership packages, as well. That means viewers can go back to watch episodes of their favorite shows and movies on demand.
Virtual multichannel video programming distributors outshine traditional satellite and cable companies by offering the following:
Customers who subscribe to vMVPDs aren’t locked into restrictive contracts with high cancellation fees or recurring equipment charges. They can sign up when they want and cancel anytime. Such flexibility allows them to try out different services without racking up hundreds in fees.
Additionally, viewers can upgrade or downgrade their subscription tiers from month to month. Someone may want to upgrade to a higher vMVPD package to watch their favorite sports team in the playoffs. They can upgrade their current package, finish out the current monthly billing cycle, and then switch back to the cheaper tier after the big game.
While many MVPD providers offer live TV and on-demand content, they can’t compare to the hundreds of options included in vMVPD subscriptions.
One of the biggest differentiators between MVPDs and vMVPDs is cost. Most vMVPD subscriptions are notably cheaper than cable and satellite options, especially when you factor in equipment costs and surcharges.
Cable and satellite providers are notorious for all of the hidden add-ons they tack onto their advertised prices, but vMVPDs offer transparent pricing. It also typically offers better value due to the platform’s integrated on-demand streaming content.
Virtual multichannel video programming distributors aren’t perfect. Some of their most notable drawbacks include the following:
MVPDs maintain much stronger relationships with local channels and regional sports broadcasters than virtual distributors do. As a result, some viewers may find that their local news and sports stations aren’t available via vMVPD subscriptions. That can be a major factor that turns them away.
Virtual multichannel video programming distributors rely exclusively on the internet to deliver content, so if a user has spotty internet service or a channel experiences a spike in demand, the streaming quality will suffer.
Virtual multichannel video programming distributors initially offered a much lower subscription price than MVPDs. Though they remain notably cheaper thanks to their bundling options and a lack of equipment fees, the gap between their physical counterparts is narrowing.
Rising subscription prices are making streaming live TV less financially appealing than it used to be. Additionally, several of the major sports broadcasting channels, such as ESPN, offer their streaming services. Live sports made the case for viewers to seek live TV streaming services in the first place, which means that particular trend could erode the vMVPD customer base.
The most notable virtual multichannel video programming distributors are as follows:
YouTube TV holds 44% of the global vMVPD market share, making it the most dominant internet-based video distributor by a wide margin. Since its launch in 2005, the platform has morphed into a true hybrid video-viewing solution, offering ad-supported video content, PPV options, live TV, and ad-free viewing via a monthly subscription. YouTube is also the only place to purchase an NFL Sunday Ticket subscription.
Hulu + Live TV ranks second in terms of global vMVPD market share, controlling 27% of the market. The bundle includes dozens of live TV channels and subscription-based streaming.
Sling TV has captured 12% of the global vMVPD market, placing it third among virtual distributors. The platform offers over 50 live channels and access to its on-demand library at no extra charge.
Fubo ranks fourth among vMVPDs with 9% of the global market share. It offers a mix of live TV and on-demand content, but its content offerings are not as diverse as those of Hulu and YouTube.
Cable giant DirecTV is fighting back against the cord-cutting trend of the past decade by offering Stream, its very own vMVPD service. Like other vMVPDs, Stream features no contracts and requires zero physical equipment. Though it has a lot of ground to make up for, Stream does provide access to regional sports networks and local channels, which is something most of its virtual distributor competitors can’t offer.
vMVPDs give advertisers access to live and on-demand streaming audiences—but MNTN Performance TV goes beyond, combining premium Connected TV inventory with advanced targeting, real-time attribution, and transparent reporting. With MNTN, you can connect with high-value audiences across 150+ top streaming networks while ensuring every ad dollar drives measurable performance.
With MNTN, you get:
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Virtual multichannel video programming distributors have built a strong presence in the live TV market, and they continue to grow their market share as traditional cable and satellite providers struggle to hold onto their dwindling customer bases.
For consumers, these changes mean more options and added flexibility. And for your business, the rise of vMVPDs means better control over who you target and how you deliver advertising content. With tools like MNTN Performance TV, you can tap into the opportunities provided by vMVPDs and internet-based streaming to build your brand.
Discover how Performance TV delivers revenue, conversions and more through the power of Connected TV. Request a demo today to speak to an expert.