Sling TV Will Take 'Meaningful' Bite From the MVPD Ecosystem, Says BTIG Analyst

The established multichannel video programming distributor ecosystem is “most certainly going to lose a meaningful number of existing subscribers -- the only question is how many millions and how fast?” said BTIG analyst Richard Greenfield in a research note Monday, after a weeklong review of Sling TV service. “After playing with Sling TV, it is hard not to love the ease-of-use, similar user interface across devices and quality of the experience,” Greenfield said of the $20-per-month plan that offers content from Disney (including ESPN), along with Turner, Scripps and A&E in the future. BTIG “remains confident that free, over-the-air broadcast television networks will not be part of the base Sling TV package,” Greenfield said, saying a “subset of broadcast stations may end up being offered as a premium add-on to Sling.” Among Greenfield’s highlighted callouts: Sling TV's linear channel navigation capability, which offers extra kids’ and news/info packages available as add-ons to the basic service. He said he was able to watch the Australian Open on Sling TV’s iPad version while simultaneously browsing channels. He cited free video-on-demand, which enables users to watch shows that already have started airing or aired earlier in the day. Transactional movies-on-demand allows users to rent movies in SD or HD for a 24-hour viewing period, which includes being able to start a movie on one device and finish on another that’s part of a universal watchlist. Users can pause, rewind and fast forward linear content on some channels, he said. He also said the quality of the video stream fluctuated, at one time delivering at a 3.7 Mbps bitrate and at another time a 4.7 Mbps data stream. On bandwidth consumption, Greenfield said a Sling TV subscriber who watches the industry average of five hours of streamed TV per day at a 4.7 Mbps bitrate would consume 320 GB of data per month. Streaming two hours per day at 3.7 Mbps would eat 100 GB per month, he said. A “significant portion of Sling TV subscribers" will pair their subscription with some combination of Amazon, Hulu and Netflix streaming, he said, resulting in monthly data consumption that will be “quite significant.”