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Parks Associates has released findings from a new multi-country consumer study showing 15-30 per cent of broadband households in North America and Western Europe are interested in a TV Everywhere solution. The research firm’s analysts say as multi-screen solutions and streaming options become available to more consumers, these services will be valuable in retaining and acquiring subscribers, but limited in their ability to expand ARPU.
Parks Associates’ study found among the countries surveyed, the UK has the highest level of interest in a TV Everywhere solution, with nearly 30 per cent of broadband households interested in a service allowing them to view TV programming on multiple devices, including tablets, smartphones, and connected CE.
“In the US, Netflix Watch Instantly is having a major impact on TV viewing trends, with 22 per cent of all broadband households using this service, more than those who use Blockbuster retail stores,” said John Barrett, Director, Research, Parks Associates. Analysts are available to comment on Netflix’s strategy as well as this week’s expected announcement from Dish Network and Blockbuster on a new streaming video service.
The study outlines how providers can leverage TV Everywhere to increase net additions and entice pay-TV subscribers to consolidate mobile phone and Internet services. Roughly 15-30 per cent of broadband households are willing to pay additional fees in order to obtain this service. However, one-third of all broadband households would switch to a provider offering free TV Everywhere, and 10-20 per cent would consolidate their mobile phone and Internet services with a provider if necessary to obtain TV Everywhere. As a result, its potential to drive ARPU gains directly is limited.
“You can charge additional fees for TV Everywhere as long as nobody else offers it for free,” Barrett said. “It’s a great example of the prisoner’s dilemma in economics. As soon as one player offers it for free, everybody will be forced to do so, or they will start bleeding subscribers.”