Jupiter Research finds that 66 percent of current pay TV subscribers are satisfied with their current services, but 52 percent of consumers would switch pay TV service if they could get a better price for the same channel selection. A la carte channel selection option followed, attracting 46 percent of consumers. This is a potential barrier for new entrants in the U.S. TV market (e.g., the telcos) that require huge investments in infrastructure and design services to attract subscribers in a saturated market. An additional threat of cable customers opting for cable phone service instead can further impact the telcos' core business. This leaves no option for the telcos but to match cable's triple-play bundle services.
Although the business case for a la carte channel selection remains uncertain, and media companies are likely to resist such service plans, the research firm states that IPTV services should focus on giving consumers greater choice and control over their television experience, if not true a la carte. The report also found only 6 percent of consumers interested in high definition programming and only 3 percent of consumers attracted to a greater selection of VoD services. The disruptive technologies and changing business models has created a "do-or-die" situation.
For more on this:
- read Jupiter Media's press release
ALSO: A study by Amaru, a provider of broadband media entertainment, on U.S. consumer attitudes towards on-demand entertainment via broadband found that almost three-quarters of Americans would be interested in accessing content on-demand via their mobile devices or computers. Release