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Q4 2020

Industry Report

TV Services: Trends and Competition in Pay TV

While widely adopted, pay TV is increasingly threatened by changing consumer habits and substitutes. From virtual MVPDs to new Android set-top boxes, the pay-TV industry continues to reshape itself to address current competition and consumer demands. This report examines competitive trends, alternatives to pay TV, and their impact on the television industry. It profiles the leading virtual MVPD services and their strategic approaches to the pay-TV market. The report includes five-year global pay-TV forecasts.


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Bottom Line

Cord-Cutting among Consumers

Rising Cost of Content

Competition with vMVPDs and Others

Subscription Aggregators Pose a Larger Threat Than vMVPDs

Live OTA Broadcasts Are Staging a Comeback

Sports and Content Production in 2020

Impact on Sports Media Rights

New Content Production

Strategies Among Pay-TV Providers

A Focus on Valuable Subscribers

Horizontal and Vertical Integration




Set-Top Boxes and App-Based Pay-TV

Advanced Set-Top Box Systems

Android TV and X1 Licensing

Android TV’s Challenger: Comcast’s X1 Platform

App-Based TV and Support for Mobile Devices

OTT Service Bundling and Aggregation

Partnerships with vMVPDs and Others

Market Forecasts

Implications and Recommendations

Create Channel Bundles without Sports

Make Use of App-Based Delivery Models to Innovate on Features

Sports Features and Sports Content for Sports Fans

Watch Parties and Social Viewing

Support Customers on the Platforms They Use

Grow Alternative Revenue Models

Aggregation and Advertising in a New Format

Sports Betting and Sports Betting Content

Look to Alternative Content Sources and New Service Types

Ongoing Change and Market Shifts


Pay-TV Adoption by Type (2019-2020)
Pay-TV Services by Type
Seven Key Drivers for Cord-Cutting
Pay-TV vs. OTT Adoption in the US
Recent US Pay-TV Price Increases
Cost of Programming/Content Paid by Major Pay-TV Providers
Adoption of Online Pay-TV from Newcomers vs. Traditional Players; US only, Q3 2020
Adoption of Pay-TV Services Among US Broadband Households by Generation
Top US OTT Video Services
Share of Online Video Viewing Time Per Platform
Share of Time Spent Watching Content
Forecast of Pay-TV Adoption in North America: 2020 - 2024
Estimated vMVPD Share of the US Pay-TV Market: 2015-2024
Watcho User Interface

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