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CTV has become the primary gateway for popular OTT video streaming services, as well as a conduit for digital audio, gaming, and even accessing linear TV (via digital TV providers, formerly known as vMVPDs). This degree of success will mean limited topline CTV user growth going forward. Click here to view our full forecast for US CTV users. Almost everyone in the US lives in a CTV household.

Virtual multichannel video programming distributors (vMVPDs) are internet-delivered live TV services (e.g., Hulu + Live TV, Sling TV, YouTube TV).

This analysis excludes digital pay TV services鈥攌nown as virtual multichannel video programming distributors (vMVPDs) like YouTube TV and Sling TV鈥攚hich skew even more toward subscription revenues. Netflix is a subscription revenue outlier. Netflix relies more on subscription revenues than any other streaming service that sells advertising.

And so we had this interesting new phenomenon where digital pay TV, which for a while was called the vMVPDs, virtual multi-channel programming, blah, blah, blah, blah. But it's basically YouTube TV, Hulu with Live TV, Fubo, people are paying to have the cable TV experience digitally. And we had categorized that as a digital media phenomenon because it is basically streaming.

This year, less than one-fourth of total OTT subscription revenues will come from digital pay TV services like YouTube TV and Sling TV, also known as vMVPDs (virtual multichannel video programming distributors). Subscription revenues for OTT will soon pass traditional pay TV. OTT subscription revenues will exceed traditional TV subscription revenues in 2025 for the first time.

If virtual multichannel video programming distributor (vMVPD) viewers are added to traditional pay TV viewers, that tipping point will not happen by 2027, but it will likely occur the following year if current trends hold. Later this decade, CTV will likely surpass TV in average daily time spent.

The virtual multichannel video programming distributors (vMVPDs) are small, but YouTube TV is set for major growth thanks to the NFL. YouTube TV will lead the entire OTT category in viewership growth in 2023, thanks almost entirely to its acquisition of the NFL Sunday Ticket.

Nearly 60% of OTA households that don鈥檛 subscribe to a subscription video on demand (SVOD) service, for example, are households of one person, while 45% of OTA households that subscribe to an SVOD service but don鈥檛 use a vMVPD are home to three or more people. From an income perspective, however, OTA households that subscribe to an SVOD service and use a vMVPD are the biggest earners.

But that content is now more accessible on digital services than ever before, with OTT streaming services like Prime Video and vMVPDs like YouTube TV both offering NFL games, eating into pay TV鈥檚 market. There are also more channels through which pay TV customers can transition to digital services than in recent years.

That figure is increasing as people adopt vMVPDs. vMVPDs include YouTube TV (21.5 million US viewers), Hulu + Live TV (11.4 million US viewers), and Sling TV (5.1 million viewers). Streaming: On demand programming delivered via the internet. US subscription OTT ad spend on CTV will total $9.48 billion this year, an increase of 31.1% over 2023, per our March 2024 forecast.

Viewing to broadcast and cable content has always been reflected in the corresponding broadcast or cable category, including viewing that occurs via MVPD/vMVPD apps.

But the number of virtual multichannel video programming distributors (vMVPD) households tells a different story. The number of households using vMVPDs like fuboTV or Sling TV to access cable via the internet will be around 25 million more than those that do not this year, according to our forecast. So yes, the cords have been cut.

In this comparison, pay TV includes both traditional pay TV and digitally delivered services known in industry parlance as virtual multichannel video programming distributors (vMVPDs). The revolution will be connected. In 2024, US CTV households will more than double traditional pay TV households.

In this comparison, pay TV includes both traditional pay TV and digitally delivered services known in industry parlance as virtual multichannel video programming distributors (vMVPDs). The revolution will be connected. In 2024, US CTV households will more than double traditional pay TV households.

Digital pay TV services (sometimes called vMVPDs) like YouTube TV offer an experience similar to cable, where users have access to a library of live TV channels. The joint sports offering between ESPN, Warner Bros. Discovery, and Fox would also combine multiple offerings. These platforms need to find other ways to stand out beyond exclusivity. Look for streamers that offer the best first-party data.