Last week we heard that the cable industry could best compete with IPTV services by launching high-definition (HD) television services. Now reports are coming in that have gone back to competitive pricing as the key to trumping the telcos' TV services. AT&T just launched its U-Verse services in San Antonio, TX and incumbent cable operator Time Warner responded by reducing the price of its triple-play offerings of television, Internet and phone services. However, the cable MSO did add on premium channels and faster broadband connections for its loyal customers. Studies have shown that consumers pick TV services based on price.
For more on the price vs. premium features strategies:
- read this article from teleclick.ca