A study shows that a $10/month entertainment-only skinny bundle would attract 4.6 million new subscribers to pay TV. MoffettNathanson says a channel lineup featuring AMC, A&E Networks, Discovery, Scripps (Cooking Channel, DIY Network, Food Network, Travel Channel) and various independent networks would fetch a price of about $10.
The study says that rate would be a much better alternative than what streaming services are offering in the $35-$40 range. With just entertainment channels, that means that networks like beIN Sports, Big Ten Network, CBS Sports Network, ESPN/ESPN2/ESPNU, FS1/FS2, Fox Soccer Plus, Golf Channel, MLB Network, NBA TV, NBCSN, NFL Network, NHL Network, SEC Network, Tennis Channel, and others would be on the outside looking in.
And having a low-cost skinny bundle would attract plenty of takers:
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“The lower wholesale price of ~$10 creates a low enough cost bar to generate significantly more demand, revenue, and gross profit than the current crop of vMVPD bundles out there today,” the firm wrote in a research note.
An entertainment-only bundle without any sports networks has been floated before especially by Viacom CEO Bob Bakish. He predicts a non-sports bundle to be available to the public for under $20 sometime this year.
The study says if the $10 bundle went up to $30/month, The number of new subscribers would fall to 800,000.
The only thing about having an entertainment-only bundle is that the sports networks would fight to be included. But if a pay TV provider is able to bring one to fruition, it might appeal to non-sports fan who’s tired of having to pay for sports without watching it.
It will be interesting to see which pay TV provider will take the plunge in offering a low-cost entertainment-only skinny bundle package.
