Virtual MVPDs Could Be Scene of Subscriber Price War, UBS' Mitchelson Says

Deep-pocketed companies like Amazon and Google might try to undercut multichannel video programming distributor competition when they launch their virtual MVPD services, perhaps by putting up with negative returns in exchange for growth and increased share, UBS analyst Doug Mitchelson emailed investors Thursday. He said investors are still wait-and-see on virtual MVPDs, but any shoring up of pay-TV subscriber levels in the U.S. could make them a big plus for media companies with such services, and those without would take particularly big hits. CBS also likely will see more virtual MVPDs add its over-the-top service since Google reportedly secured a licensing deal, Mitchelson said. He said since virtual MVPDs seem to be making sports content a key part of their offerings, concerns about skinny bundles hurting Disney/ESPN and Fox and its regional sports networks seem "overdone.”