Perceived value of pay-TV declines
March 5, 2013
The value of traditional pay-TV service like cable, satellite, and telco TV appears to be waning according to research by TDG. While close to 90 per cent of broadband subscribers are still on the pay-TV dole – a testament to its importance in daily consumer lives – the perceived value of the service relative to prices paid has declined in the last 12 months.
For example, in 2012, 55 per cent of pay-TV subscribers rated their service as a good value, meaning they believe the benefit they received was worth the money spent. In 2013, that percentage had declined by 10 per cent, down to 49 per cent of pay-TV subscribers.
More importantly, the percent of pay-TV subscribers that rate the value of their service as “extremely good” declined from 31 per cent to 25 per cent, down 18 per cent year-over-year. Regardless of what competitive services are available; regardless of which operator is running the best deal at the time; regardless of regional price advantages, it appears that the value of pay-TV subscriptions is declining.
“With prices for traditional pay-TV services on the rise, it makes sense that consumers would second guess the value of these subscriptions,” notes Michael Greeson, Founding Partner of TDG. “Though value has remained high for decades, in the last year perceptions seems to be waning. Without doubt this is due to continued economic uncertainty, but our research continues to show that the availability of alternative video sources is weighing more heavily on consumer perceptions than many believe.”