Heavy Reading Announces Consumer Survey Summary Results For 'Making TV Pay: The Telco Challenge' at TelcoTV 2008

Survey finds price of service and discounts critical to gaining pay TV subscribers in the current economic climate

PRNewswire
IRVINE, Calif.
Nov 12, 2008

TelcoTV, the premier meeting place for the massive convergence of the entertainment and communications markets, today announced that Heavy Reading, the leading independent market research organization solely focused on service providers and their technology and business plans, announced the summary results of a new study conducted in October 2008, "Making TV Pay: The Telco Challenge."

The study explores consumer attitudes towards pay TV services, with particular emphasis on consumer perceptions of telcos as providers of TV services. The study results were presented by Heavy Reading Senior Analyst, Aditya Kishore, on Wednesday, November 12, at 1:00 p.m. at the Anaheim Convention Center, as part of the TelcoTV 2008 Conference and Expo.

The industry's most recent pay TV services study examined the current mindset of pay TV subscribers and the key capabilities required for gaining new subscribers and keeping existing ones in this increasingly competitive market. This is the first survey to explore the mindset of pay TV subscribers after the credit crunch has hit the U.S., and offers a glimpse into the impact of the current economic climate on the pay TV business.

The "Making TV Pay" study finds that the price of service and discounts are particularly important for attracting new subscribers.

"Pricing and discounts dominate the decision process for new customers. Features, content packages, and HD are secondary decision drivers for new subscribers considering switching to a new provider," said Kishore. "This would suggest that marketing campaigns without a discount kicker will not be effective in driving new subscriptions."

  The study also notes the following trends:

  --  Advanced applications (VOD, DVR, HD) are valued by subscribers but
      don't appear to be attracting new subscribers to a provider.
  --  There does not appear to be a significant preference for any type of
      provider (cable/satellite/telco) when respondents consider switching
      providers.
  --  Satisfaction is fairly high across various measured parameters, but
      significantly lower when considering the cost of the service.
  --  Churn appears to be slowing, with a significant percentage of
      subscribers uninterested in switching providers.

  The survey focused on the following key issues:

  --  Current pay TV subscriptions, length of tenure, and selected providers
      (cable, satellite, telco)
  --  Primary decision drivers for selecting current pay TV providers
  --  Churn drivers and reasons for leaving previous provider
  --  Satisfaction levels with current services across various criteria such
      as price, channel choices, dependability, and customer care
  --  Interest in advanced services such as DVR, VOD, Interactive TV, and
      HDTV
  --  Multiservice bundling, plans to change providers, and likelihood of
      selecting telco for TV service

Kishore has more than 12 years of experience in consumer media. His coverage areas at Heavy Reading include digital media applications and services, and their distribution over broadband networks. Prior to joining Heavy Reading, Kishore was the Director of Global Media and Entertainment at the Yankee Group. He was responsible for managing digital media research across Yankee Group analyst teams in North America, Europe, and Asia.

About Light Reading

Founded in 2000, Light Reading (www.lightreading.com) is the leading online media, research, and focused event company serving the $3 trillion worldwide communications market. Lightreading.com is the ultimate source for technology and financial analysis of the communications industry, leading the media sector in terms of traffic, content, and reputation. Light Reading's research arms, Heavy Reading and Pyramid Research, provide the most comprehensive communications research, market data, and technology analysis in close to 100 markets around the world. Light Reading produces almost 20 targeted communications events including TelcoTV, Ethernet Expo New York and Ethernet Expo London, The Tower Summit at CTIA, and Optical Expo, as well as focused one-day events tailored for cable, mobile, and wireline executives. Light Reading was acquired by United Business Media in August 2005, and operates as a unit of TechWeb.

About TechWeb

TechWeb (www.techweb.com/aboutus) the global leader in business technology media, is an innovative business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb produces the most respected and consumed media brands in the business technology market. Today, more than 13.3 million business technology professionals actively engage in our communities created around our global face-to-face events Interop, Web 2.0, Black Hat, and VoiceCon; online resources such as the TechWeb Network, Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and The Financial Technology Network; and the market leading, award-winning InformationWeek, TechNet Magazine, MSDN Magazine, Wall Street & Technology magazines. TechWeb also provides end-to-end services ranging from next-generation performance marketing, integrated media, research, and analyst services. TechWeb is a division of United Business Media, a global provider of news distribution and specialist information services with a market capitalization of more than $2.5 billion.

About United Business Media Limited (www.unitedbusinessmedia.com)

United Business Media Limited (UBM) is a global media and marketing services company that informs markets and brings the world's buyers and sellers together at events, online, in print, and with the information they need to do business successfully. UBM serves professional and commercial communities, from IT professionals to doctors, from journalists to jewelry dealers, from farmers to pharmacists around the world. UBM employs more than 6,500 people in more than 30 countries. UBM's businesses operating in the US include CMPMedica, Commonwealth Business Media, Everything Channel, PR Newswire, RISI, TechInsights, TechWeb and Think Services. UBM is listed on the London Stock Exchange (UBM.L) and has a market capitalization of $1.6 billion.

About NTCA

The National Telecommunications Cooperative Association is the premier association representing more than 580 locally owned and managed telecommunications cooperatives and commercial companies throughout rural America. NTCA provides its members with legislative, regulatory, and industry representation; meetings; publications and educational programs; and an array of employee benefit programs. Visit us at www.ntca.org.

  CONTACT:
  Tony Fisch
  President, Tony Fisch Consulting
  (323) 461-7878
  tony@fischconsulting.com

First Call Analyst:
FCMN Contact:
http://www.ntca.org
http://www.techweb.com/aboutus
http://www.unitedbusinessmedia.com

SOURCE: Heavy Reading

CONTACT: Tony Fisch, President, Tony Fisch Consulting, +1-323-461-7878,
or tony@fischconsulting.com

Web Site: http://www.lightreading.com/

Company News On-Call: http://www.prnewswire.com/comp/683682.html


RSS
rss