We just published a case study on price structure and sensitivity in the Live TV market, particularly focusing on traditional MVPD (a.k.a. Cable & Satellite TV) and vMVPD (a.k.a Streaming TV). The study evaluates the role of high MVPD subscription rates, rising vMVPD rates as well as varying price sensitivity between market players on seismic upheavals in consumer preferences. Upheavals that have resulted in an average of 6 million consumers quitting cable TV from providers like Comcast and Charter Communications annually for the past 7 years and an average of 2 million consumers per year shifting into streaming Live TV providers like YoutubeTV, Fubo, Hulu + Live, Sling TV. There’s a cultural shift underway in how people consume Live TV, pricing continues to play a big role. In looking at price sensitivity across key players it is important not to just evaluate average price responsiveness across the range of historical or surveyed prices or rates, but also to look at specific price points that will drive outlier gains or losses relative to the smoother price elasticity curve. Based on the data we analyzed, Cable TV still has hope but this is going to require overhauling their cost model in order to be at parity to the biggest vMVPD player i.e. YoutubeTV.

Click here for highlights from the analysis.