Increase in NFL's vMPVD Subscriptions Significantly Surges
The National Football League (NFL) has a significant influence on the subscriber numbers of Virtual Multichannel Video Programming Distributors (vMPVDs) in the United States. According to recent data, the NFL season, which runs from September to February, sees a 77% boost in customer sign-ups for vMPVDs carrying NFL rights.
The 2023 Super Bowl on Fox marked the largest sign-up event for vMPVD services, with a staggering 410,000 subscriptions in one day. Companies directly acquiring NFL rights, such as Peacock and Paramount+, have leveraged these events as tools for generating sign-ups to their streaming platforms. Peacock, for instance, generated 2 million subscriptions with an exclusive playoff game, while Paramount+ garnered around 2.4 million sign-ups on the day of the 2023 Super Bowl.
The NFL, being the most popular sporting event in the US, accounts for 44% of the entire sports broadcast rights spend in the country. This makes it a valuable asset for vMPVDs seeking to attract new subscribers. In fact, the popularity of NFL football continues to play a key role in customer acquisition.
During the off-season (March to August), vMPVD services collectively receive an average of 29,000 sign-ups per day since 2020. This number increases significantly during the on-season, with an average of 51,000 sign-ups per day. In contrast, streaming services without NFL games have seen only a 2.5% increase during NFL seasons.
The increasing number of NFL games being packaged as streaming exclusives is a threat to vMPVD services like Fubo and YouTube TV. This shift could force vMPVDs to either invest directly in NFL rights or provide access to streaming services as an aggregator to continue attracting subscribers.
As fewer games become available on linear channels, vMPVDs will need to consider aggregating streaming services alongside traditional channels. A new report by Ampere Analysis suggests that the NFL is worth the cost for streaming services offering pay TV bundles.
The decline in US Pay TV penetration, which has fallen from 84% in 2009 to 42% by the end of 2023, further emphasises the importance of vMPVDs in the changing landscape of television. With more consumers ditching cable, vMPVDs are increasingly popular as they offer a more flexible and cost-effective alternative.
A survey revealed that 44% of sports fans in the US enjoy the NFL, with 43% of them stating it as their favorite competition. This popularity, coupled with the convenience and cost-effectiveness of vMPVDs, makes them an attractive option for sports enthusiasts.
In conclusion, the NFL season remains a significant factor in customer acquisition for vMPVDs. As the trend towards streaming exclusives continues, vMPVDs will need to adapt to remain competitive and continue to attract new subscribers.
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