Shulou(Shulou.com)11/24 Report--

CTOnews.com, April 3 (Xinhua)-- according to TechInsights Research, Frontier Communications has announced that it will use vMVPD (CTOnews.com Note: virtual Multi-Channel Video Program publisher) YouTube TV as its main video service, integrating YouTube TV bills into user bills and offering discounts in the first year. Although Frontier is a small and medium-sized company, it is still an important step in the bundling of Internet and video services, allowing providers to still profit from Internet and video bundles while starting to remove spiralling content licensing costs from their balance sheets.

Frontier's decision will mainly affect new subscribers. Although existing users of Frontier hosted video services can choose to switch to YouTube TV, at least for now, Frontier will continue to support its existing video services.

The top 17 pay-TV providers in the US, accounting for 96-98 per cent of US pay-TV subscribers, lost 6.07 million subscribers in the past year, according to the TechInsights North American pay-TV pairing report. If you exclude vMVPD providers such as YouTube TV, Hulu+Live TV and Fubo, pay-TV providers have lost 7.93 million subscribers in the past year alone.

As the number of pay-TV subscribers continues to decline, more and more pay-TV providers, especially Tier 2 and Tier 3 providers, are replacing their hosting services with third-party OTT pay-TV services such as YouTube TV, Hulu+Live TV and Fubo and bundling these services with their Internet services. In this way, they can focus on the more profitable broadband (and many wireless providers) business.

OTT (CTOnews.com Note: Over The Top) pay TV services are more likely to profit from video services when they expand nationally, while cable operators and telecom companies are limited by the physical footprint of their factories. In the United States, OTT pay TV has a potential market for more than 125 million broadband households, of which only 13.2% currently subscribe to OTT pay TV services. As more and more commercial third-party OTT pay-TV services replace their internally managed TV services, this number is bound to grow.

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