DirecTV targets over-the-air viewers by offering a discount with its "No Locals" package, challenging the traditional reliance on local broadcast channels. This move aims to attract cord-cutters seeking cost-effective alternatives, potentially disrupting the dominance of over-the-air broadcasting in the television market.
The news: DirecTV is offering customers a deal that could shift the balance of power in the linear TV market. In an effort dubbed “No Locals,” DirecTV is attempting to lower the cost of pay TV by giving consumers a discount if they remove local, over-the-air (OTA) TV stations from their package.
The argument: Pay TV viewership is declining. It’s a reality that has become increasingly pressing for pay TV providers over the last year, especially with sports becoming available on streaming services and TV networks like Disney throwing their weight around in carriage fee deals. To stave off the worst, pay TV providers have to offer major discounts or benefits.
Over-the-air’s future: Despite the decline of pay TV and linear overall, OTA viewership is actually growing—albeit modestly. We forecast that there will be 20.6 million US over-the-air TV households this year, up 2.3% year over year.
Our take: DirecTV is betting that consumers will value a potential $140 in savings more than they’ll value access to their local networks. OTA growth could put a dent in that plan, but if DirecTV is successful, local television could be the next casualty of the streaming wars.
Source: emarketer