New Research Shows Hispanics are VMVPD Ready

As content consumption changes, content providers have altered the ways they distribute programming to audiences. In recent years, virtual multichannel video programming distributors (VMVPDs) have entered the marketplace. Instead of delivering live television via a set-top-box or satellite feed, VMVPDs allow consumers to stream their content through an internet connection across all devices. The majority of VMVPDs also have a tailored offering – a “skinnier” set of channels to either broadly appeal to consumers or serve them in a specific category like sports or entertainment.

There is very little syndicated, consumer data available for these new services, so we commissioned a study from MediaPredict to gain further expertise on the consumers we know best: Hispanics. We sought to understand what Hispanics know about these services, if they’re interested in subscribing to them, how this all may or may not differ from non-Hispanics and more.

Here are some key takeaways, focused on the Adult 18-34 demo:

Hispanic technological habits are well-suited for VMVPDs: Hispanics were +43% more likely to refer to themselves as early adopters than non-Hispanics. They were also +23% more likely to say they watch TV content on alternative devices, which were defined as anything other than a traditional TV set (mobile devices, streaming media players, video game systems, etc.). When looking at types of programming, the study found that Hispanics were +21% more likely to say that Live TV is a must-have. These three attributes illustrate a consumer who aligns well with a VMVPD offering.

Hispanics are more informed and interested in VMVPDs: We asked respondents an unaided question to define what a VMPD service is. Correct responses were determined by mentioning the live TV component. Hispanics were +50% more likely to get it right. And not only were Hispanics more informed, they also were +36% more likely to say they were interested in subscribing. This was largely due to the fact that VMVPDs are more affordable due to their “skinny” nature. But when asked further questions about what appealed to them regarding a potential VMVPD subscription, a majority of Hispanics gave one recurring answer…

Hispanics want Spanish-language networks on VMVPD platforms: The survey asked respondents which networks were “must-have channels” on a VMVPD service. Two of the top three were Spanish-language channels (Univision was #1). When asked which genres they most wanted to watch, the top five for Hispanic respondents were News, Sports, Comedies, Telenovelas, and Music. So, while Hispanic consumers are well-suited for a VMVPD product, it is contingent on it carrying the right content in the basic offering.

Source: MediaPredict & UCI VMVPD Study, Oct 2017

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