Skinny Bundles Activated After Q2 2016 Subscriber Decline

At the beginning of the week, Leichtman Research Group released some striking information: in the second quarter of 2016, the top pay-TV providers had lost around 665,000 subscribers, a new low.

“The reality is that there’s a whole new generation that’s not going to pay-TV at all, so to get a shot at reaching them, you have to go to the skinny bundle and the OTT space,” Peter Csathy, founder of media investment and advisory firm Creatv Media, told Variety.

Starting this month, a few companies are embracing new skinny bundle plans in an attempt to woo consumers who may be jumping ship.

CenturyLink, headquartered in Monroe, Lousiana, just revealed new over-the-top (OTT) products that will offer skinny bundles.

“We think [the addition of broadcast networks] will be a differentiator as we bring those local channels with the over-the-top cable channels,” said Glen Post, president and CEO of CenturyLink, on a quarterly earnings call.

While not much else is known yet, it’s currently being trialed, with an aim for public launch around the end of the year.

In early August, DISH debuted its “Flex Pack skinny bundle,” a $30/month service that features a core package of approximately 50 channels, with the ability to add more “channel packs” for an additional charge.

“Our customers are frustrated with having to pay for hundreds of channels, most of which they never watch,” said Warren Schlichting, DISH executive vice president of Marketing, Programming and Media Sales, in a press release. “Flex Pack provides a level of flexibility and control that brings our customers closer to the ideal of fully tailoring their channel lineup.”

Channels in the Flex Pack include AMC, TNT, USA, HGTV, E!, Cartoon Network, History, A&E, CNN, Discovery, TBS, Food Network, FX and TV Land.

In the upcoming fourth quarter, AT&T has stated that it will be launching smaller OTT services with DirecTV branding.

“We want to have the ability to give [viewers] pay-TV as an app,” said AT&T’s SVP of strategy and business development, Tony Goncalves. “We got to un-tether it from a set-top box.”

By the end of the decade, it seems likely that every pay-TV company will have some at least one skinny bundle option, if not more. How will it impact subscriber rates?

Author: Brian Cameron

Image via Shutterstock

DEMO OUR DATA- Get a complementary data feed

Post a Comment