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Consumers identify price as biggest motivating factor to switch to telco TV

A recent study from Lyra Research identified price as the biggest motivator for consumers to switch from cable or satellite to telco video delivery. Chart courtesy of Lyra Research. To view an enlarged image, click here

A lower price is the greatest incentive for consumers to choose television service offered by telcos over cable or satellite TV, according to a new survey from Lyra Research.

The research firm published its findings in a new report “Dialing for Viewers: 2005 Telco-TV Interest Survey” as part of its DTV View report. The survey examined consumer attitudes toward television service providers and the benefits of bundled video, voice and broadband Internet service, or triple-play service.

According to Steve Hoffenberg, principal analyst for the DTV View report series and Lyra's director of electronic media research, the best strategy for telcos to break into video delivery and secure market share will be to undercut cable’s triple-play pricing.

Among the topics studied were the factors that would motivate consumers to switch. Motivating factors included:

  • Lower monthly cost than satellite or cable – 54 percent
  • A la carte channel choice – 17 percent
  • Convenience of single bill for TV, telephone and Internet – 14 percent
  • Ability to receive channels/programs not available on cable or satellite – 4 percent
  • Don’t know – 11 percent

“Dialing for Viewers: 2005 Telco-TV Interest Survey” is based on a comprehensive survey of 1000 U.S. adults. It was conducted in December 2004 and January 2005.

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