Viacom's sports-free, entertainment-only skinny bundle (VIAB)

Negotiations between Viacom and at least one multichannel video programming distributor (MVPD) to create a low-cost, entertainment-only TV bundle are at an advanced stage, Variety reports.

Viacom sees a transformational opportunity. The company hopes that a package of high-quality entertainment at a low cost will attract consumers — particularly cord-never millennials — into the pay-TV ecosystem, and keep others from leaving. This proposition would be especially appealing to consumers who don’t care much for sports.

Here are some key details of the plan:

Doubts abound over the business model for digital TV. Bakish has also called into question the viability of the $40 skinny bundles that include sports and broadcast signal because the margins on them are so slim. According to Bakish, one distributor said it costs $46 to produce these digital TV offerings — which doesn't seem a sustainable cost structure. Based on this remark, it's possible that prices on $40 skinny bundles, with sports, could rise.

Over the last few years, there’s been much talk about the “death of TV.” However, television is not dying so much as it's evolving: extending beyond the traditional television screen and broadening to include programming from new sources accessed in new ways.

It's strikingly evident that more consumers are shifting their media time away from live TV, while opting for services that allow them to watch what they want, when they want. Indeed, we are seeing a migration toward original digital video such as YouTube Originals, SVOD services such as Netflix, and live streaming on social platforms.

However, not all is lost for legacy media companies. Amid this rapidly shifting TV landscape, traditional media companies are making moves across a number of different fronts — trying out new distribution channels, creating new types of programming aimed at a mobile-first audience, and partnering with innovate digital media companies. In addition, cable providers have begun offering alternatives for consumers who may no longer be willing to pay for a full TV package.

Dylan Mortensen, senior research analyst for BI Intelligence, has compiled a detailed report on the future of TV that looks at how TV viewer, subscriber, and advertising trends are shifting, and where and what audiences are watching as they turn away from traditional TV.

Here are some key points from the report:

In full, the report:

Interested in getting the full report? Here are two ways to access it:

Viacom's sports-free, entertainment-only skinny bundle (VIAB)

JOIN OUR PULSE COMMUNITY!