Skinny Bundles Slow Down Pay TV Downfall

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by @todotvnews the 11/05/2018
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While cord-cutting stabilized in the first quarter of 2018, skinny bundles were able to add almost the same amount of subscribers as traditional systems lost, according to a report by MoffettNathanson.

Consultancy company MoffetNathansons, which specializes in media and the cord-cutting trend, published its final analysis for the first quarter of 2018, in which the pay TV market's results could be considered positive.
 
Because according to the report, cord-cutting ended with a 3.4% rate in the period, the same number as the last quarter of last year.
 
So while the industry is still losing subscribers, the number could be positive in the sense that cord-cutting hasn't sped up.
 
But in addition, if you consider the additions to virtual pay TV services -known as skinny bundles- the results are even more encouraging: in total, pay TV lost only 0.5% of its base.
 
This is the smallest drop since Q4, 2015.
 
"The higher the conversation rate, the better for media companies, and not just because they don’t lose a subscriber; they actually get paid more (a higher per subscriber affiliate fee) as well,” Moffett said. “That makes cord-cutting relatively painless for programmers that are carried on all the virtual bundles” and a net plus for widely-carried network groups.
 
"That’s not to say a skinny bundle is a perfect replacement for a fat one -remember, not every network is in every vMVPD bundle- but it’s a whole lot easier to face a future where 70% or 80% of all cord cutters are still paying for a streaming video bundle, even if its a skinny one, than to face a future where, say, more than half of all cord cutters are lost entirely to the ecosystem."
 
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