The term “skinny bundle” has taken on several definitions in recent years. Once used to describe pared-down cable TV packages, the skinny bundle has since been brought into the digital video sphere and can describe linear OTT services that offer customizable channel packages or a service that combines linear and on-demand content, as defined in the Digital TV Europe study.
The latter definition alludes to linear OTT services like Sling TV and fuboTV, which now have subscriptions that offer additional access to premium, on-demand content from services like HBO and Showtime. But it also represents SVOD services like Hulu, which bolstered its offerings with Hulu with Live TV, a linear service.
These hybrid OTT services are being positioned as an alternative to cable, something that SVOD services can’t do alone, according to Hui Zhang, co-founder and chief scientist at streaming data intelligence and measurement company Conviva.
“Subscription streaming services—like Netflix, HBO and now Disney+—are very entertainment-centric, but consumers also want sports, local news, etc.,” Zhang said. “A virtual multichannel video programming distributor [vMVPD] is a natural choice for that mix of content, often in combination with other entertainment packages.”
We estimate that there will be more than 39 million cord-cutters in the US this year and more than 37 million cord-nevers (those who have never subscribed to traditional cable). Time spent with linear OTT services grew 108% year over year, much faster than the 60% in time spent viewing other streaming services not defined as linear OTT, per Conviva.