Virtual MVPDs Adding Channels, Raising Prices at Their Own Risk, TDG Says

Virtual MVPDs, which once touted their skinny bundles and low introductory prices, increasingly seem to banking on their subscriber bases transitioning to fatter, costlier packages, The Diffusion Group senior adviser Brad Schlachter blogged Tuesday. Examples include YouTube TV adding various Turner networks to its lineup, with an increase in its base cost, PlayStation Vue axing its cheaper Access Slim package, and AT&T hinting at a price increase this year for its DirecTV Now entry tier, he said. Livestreaming pay-TV operators "should proceed with caution" since lower prices and consumer choices for skinnier bundles are what attracted consumers, said Schlachter. He said increased competition could come from "cord cobbler" services where subscribers build a la carte packages.