Today’s marketplace is fiercely competitive and rapidly evolving as the array of choices for consumers to enjoy video on multiple devices in and out of the home continues to grow. The competing platforms are Multichannel Video Program Distributors (MVPD) including cable, two national satellite companies, and the large telephone companies, plus a growing number of online services delivering video over broadband.
About 100 million American consumers – more than 85 percent of all U.S. households – subscribe to an MVPD service. In the mid-1990’s, cable served 95 percent of subscribers but cable’s market share fell to 60 percent by 2010 as 39 million consumers now subscribe to a satellite or telco TV provider. This competition has resulted in the introduction of new services and bundled packages – the triple play of video, broadband and phone – that offer significant discounts.
Dozens of online video services – such as Netflix, Hulu and Roku – are now offering programming that was previously available only from broadcast TV or MVPD services. MVPDs are also responding to consumer demand for more mobility by offering new “TV Everywhere” services which enable existing subscribers to enjoy video content on PCs, tablets, laptops and potentially other Internet-connected devices.