Aggressive pricing could motivate consumers to switch pay TV services, finds report
February 28, 2006
JupiterResearch has found that 52 percent of consumers would switch pay TV services if they could get a better price for the same channel selection.
"IPTV: Simple Benefits, Not New Technology, Most Effectively Compete Against Cable," a new report from JupiterResearch, reveals what consumers regard as the most important elements in pay TV services.
Following cheaper prices, the option of a la carte channel selection proved the second strongest motivator for switching pay TV services, attracting 46 percent of consumers. There is little interest in high definition programming. Only 6 percent of consumers prioritized this feature, and only 3 percent of consumers are attracted to a greater selection of VOD services.
Potential new entrants to the U.S. TV market face enormous challenges in undertaking billions of dollars in investments to build out infrastructure and design services capable of attracting subscribers in a saturated market, the report found. Sixty-six percent of current pay TV subscribers are satisfied with their service and will require aggressive pricing, better channel selection or other clear benefits to induce switching. However, the millions of customers using cable-provided phone services create a threat to phone companies' core business and leave them with little choice but to match cable's triple-play bundle of voice, television and Internet services.
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