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What We're Watching in the Internet TV Market

Growth at over the top pay TV providers Sling and DirecTV has slowed creating an opportunity for Hulu and YouTube to gain subscribers.

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Neil Macker: We recently completed a deep dive into the pay television market, looking at the evolution of the delivery of television. Over the last four years, there have been a number of new entrants that deliver pay television via the internet or over the top, spawning the name "OTT" pay television.

OTT pay television has quickly gained acceptance among consumers with over 7 million subscribers already signed up. We believe the new services are helping to keep cord-shavers in the pay television ecosystem by offering a skinny cable bundle at much lower price point than traditional distributors. These new platforms are also attracting younger consumers.

Neil Macker does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.