VMVPD (Virtual Multichannel Video Programming Distributor): The New Era of Streaming
The video streaming industry is evolving with each passing year. Some streaming platforms are taking significant steps forward on a quarterly basis. VMVPD, short for Virtual Multichannel Video Programming Distributor, represents the new frontier of streaming video. Let’s take a quick look at the emergence of VMVPD to explain why it is likely to remain a streaming industry for years.
Make Way for VMVPD
VMVPDs are distinct from conventional MVPDs in that they transmit content through web-connected devices, empowering subscribers to view desired channels without paying an exorbitant monthly fee for conventional cable TV or satellite TV. The aforementioned MVPDs, short for multichannel video programming distributors, included both cable TV and satellite TV, providing several channels to subscribers.
The shift to the digital age paved a path toward content diversity in the form of over-the-top (OTT) services. Entertainment-seekers now stream their preferred online content on the web. There is an important distinction to be made between OTT and MVPDs. OTT platforms were primarily limited to video-on-demand while MVPDs provided a litany of live channel options.
VMVPD Advantages
VMVPD will likely remain a stalwart of entertainment for years, decades or indefinitely for several reasons. VMVPDs provide value through the emulation of traditional TV content in real time. This linear service technology empowers subscribers to tune into scheduled programs similar to its predecessor in MVPD.
VMVPD is also advantageous in that it provides unique bundling. The tech is a trailblazer in the sense that it offers skinny bundles. There is no sense in burdening viewers with expansive content packages containing channels that are unlikely to be seen when streamlined bundles are available. The allure of such a skinny bundle is that it makes it easy for users to choose and strictly pay for their desired channels.
On-demand is the best word to describe the zeitgeist of the current tech-dominated era. VMVPDs provide such on-demand content by charging a subscription fee that recurs at specific times. The subscription model is advantageous in that it is economically efficient when contrasted with conventional MVPD contracts that last much longer.
VMVPD also has merit in its extensive compatibility. Also, VMVPD functions with a wide array of devices. VMVPD technology serves up direct access to content through the web on a litany of web-connected devices. Such flexibility makes VMVPD a legitimate competitor to cable TV and satellite TV.
VMVPD is Integrative, Customizable and Efficient
If you were capable of time-traveling years into the future, you would likely find VMVPD is still going strong. Aside from the merits detailed above, VMVPD also has staying power thanks to its lack of a burdensome physical infrastructure. VMVPDs are functional without costly infrastructure, allowing for a rapid setup without fuss. In contrast, expensive cable and satellite TV require an elaborate and time-consuming installation.
Though VMVPD and SVOD are not the same; the two have some overlap in that they can be integrated with one another. Certain VMVPDs directly integrate into SVOD platforms, providing subscribers with immediate access to exclusive content through platforms such as Amazon Prime Video.
Potential Stumbling Blocks in the New Era of Streaming
VMVPD has a couple of notable flaws in its armor. In the spirit of honesty, it is worth noting VMVPDs make it challenging to pinpoint the specific channel options viewers desire. Consumer tastes shift as time progresses, meaning those with discretionary income and time to consume VMVPD content today might not be interested in the same programs months, years or decades down the line.
Moreover, age demographics determine discretionary income spending, meaning content tastes will inevitably change as time progresses. The question is whether content providers will strategically pivot accordingly.
VMVPDs have the potential to jump in price as time progresses. It is no secret that viewers are gradually transitioning away from egregiously expensive cable TV, venturing toward VMVPD. However, the influx of new customers creates the potential for price increases that might drive some viewers toward alternative options.
We would be remiss not to mention that VMVPDs might not be profitable across posterity. There is some debate as to what the optimal business model is for VMVPDs; it subscription-based content or ad-supported content. There is also the potential for additional competitors to enter the space, increasing competition to the point that competitors consume one another.
The potential drawbacks noted above pale in comparison to the technology’s merit. VMVPD is likely to capture and retain market share far into the future as it empowers providers to customize subscription options as desired. This technology provides a coveted agency that allows for the addition or removal of channels in accordance with unique viewer preferences and feedback.
