Like other entertainment segments in recent years, the market for pay television has been irrevocably altered by the rapid growth of lower-cost, subscription-based video on demand (SVOD) services. Along the way, once reliable pay TV customers have increasingly traded in their cable boxes for streaming alternatives from over-the-top (OTT) providers such as Netflix, Hulu and Amazon Prime Video. Also vying for viewers’ attention are value-based “skinny bundles” offered by virtual multichannel video programming distributors (vMVPDs).

In this Executive Insights, we look at the OTT takeover, how affordable, flexible plans continue to gain market share at the expense of pay TV, and the growing appeal of OTT aggregators. We also discuss potential signs of an overheated OTT market, with fortunes likely to favor super aggregators such as Netflix, as well as others that can successfully navigate niche tastes. To find success in this changing landscape, providers will need a playbook for assessing near-term OTT supply and demand in conjunction with an array of traditional and emerging players.

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