MVPD is video programming characterized by multiple channels transmitted directly to living rooms in the form of bundling. Bundled TV channels are available through mediums such as fiber optic internet, satellite TV, and cable TV.
The purpose of MVPD is to deliver several broadcast channels at an affordable price. Most MVPD services are provided through a subscription yet there are also on-demand options.
MVPD Vs. VMVPD
Surf the web for information about MVPD and you’ll inevitably stumble upon VMVPD. VMVPD is short for virtual multichannel video programming distribution. VMVPD provides linear and streaming content through convenient digitization.
MVPDs are competitors of VMVPDs. Part of what makes VMVPDs distinct is that they are essentially a truncated alteration of broadcast TV bundles available at a surprisingly affordable rate. Such skinny bundling is especially popular with young adults as they are comparatively flexible.
Those looking for a more formal definition of MVPDs are encouraged to delve into the 1996 Telecommunications Act. The Act defines MVPDs as cable operators that provide multichannel multipoint distribution services.
The language of the act also extends to include TV satellite program distributors that are receive-only and direct broadcast satellite service. The act also details how MVPDs make several video programming channels available to consumers through purchase.
MVPD Functionality
MVPD transmits linear video content directly to consumer homes and enterprises. MVPD functions with infrastructure designed for the transportation of data. As an example, coaxial cables, fiber optics, and satellites play an integral role in sending data to intended targets. MVPD functions with receiver boxes, connecting programs to TV. A video interface is used for control management.
The MVPD subscription model requires that customers sign contracts with the MVPD for TV content. Content is then provided for a specific length of time, be it a full year or several years.
MVPD is a Technological Marvel
The functionality of MVPD as described above is only possible thanks to its underlying infrastructure. MVPDs have gone to great lengths to invest in broadcasting infrastructure development and upgrades for service improvement. The overarching aim is to expand MVPD to new markets here in the United States, the rest of North America, and the far corners of the world.
It is worth noting that MVPD cable TV service is somewhat limited at the current moment. As of now, only specific regions and states where providers have invested in residential cable infrastructure are capable of providing MVPD service.
In contrast, MVPD service provided through satellites functions through continent-wide transmission by way of communications satellites in orbit above the planet. Such technology transmits content in linear TV format in accordance with TV programming and advertising schedules.
Examples of MVPD in Action
Some of the leading MVPD providers include:
- Charter
- Comcast
- Cox Enterprises
- AT&T
- Verizon
However, satellite TV players are also power players in this space. As an example, MVPD provider types are highlighted by satellite TV services such as DISH TV Everything Sports & Entertainment which serves up more than 200 channels and 35,000 titles on-demand.
DISH also owns a VMVPD provider in Sling TV that offers 47 channels. DirecTV Choice Package is an MVPD provider that offers more than 180 channels and 50,000 on-demand titles.
The Role of OTT Distribution
Cord-cutting is the wave of the future. With each passing day, more consumers cut the cable TV cord in favor of streaming video content. The ongoing transition toward streaming video content is highlighted by over-the-top (OTT) service. MVPDs are aware of this trend and pivoting accordingly.
The top MVPDs are accumulating video content streaming services and altering business models to stop the financial bleeding resulting from the cord-cutting phenomenon. MVPDs are also identifying additional avenues to remain competitive ranging from the automation of broadcasts to strategies to heighten retention rates.
The MVPD Business Model
Let’s shift our attention to what matters most: the economics of MVPDs. As is the case with every business, the bottom line is what keeps the doors open. Here’s how MVPD works as a business.
High-quality content is distributed to specific audiences through licensing agreements reached with the owners of video content. Such agreements detail the payment of licensing fees directly to the owners of video content. In return, broadcast rights for the video content are provided to MVPDs.
Viewers pay a monthly subscription fee to access bundled TV channels. In some cases, MVPD subscriptions cost $20 or less per month. Premier plans are at the other end of the spectrum with fees of $200+ per month. Such premium plans are highlighted by coveted channels such as HBO Max and Showtime.
