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Research: Promotional activity driving down pay-TV prices

Research from the Teligen division of market intelligence firm Strategy Analytics comparing pay-TV service prices as of May 2017, covering 31 of the OECD countries, suggests that the average price of the cheapest basic Pay TV package tracked is declining by -1.3 per cent vs. November 2016. According to Strategy Analytics, this price decline is as a result of an increase of promotional activity.

The report, Pay TV prices in OECD countries, May 2017, also highlights significant differences in pay-TV prices even between providers in the same country. The study shows great variation in the structures and underlying technologies of the pay-TV offers, even when benchmarking the most basic offers from each provider.

Strategy Analytics has reviewed the prices and contents of nearly 1,900 Pay TV offers for 115 providers in 31 OECD countries, using a methodology established through a number of client studies in recent years. When selecting the most basic set of user requirements, without specific requirements for content or technical capabilities such as HD or recording, the ten countries with lowest prices are Poland, Sweden, Finland, Estonia, Hungary, Denmark, Austria, Australia, Slovak Republic and Slovenia.

Even among the cheapest offers per country, there are pay-TV packages that include more advanced properties such as HD and recording. The range of offers may vary significantly between providers. For the most basic requirements, the average monthly price across the 31 countries is $/PPP21.73 including VAT/tax, down from $22.02 six months ago. This does not include the TV Licence fee prevalent in many countries.

“Pay-TV prices and trends continue to vary significantly by provider and country,” advised Teligen Director Halvor Sannæs.

“Pay-TV remains a very competitive market with, on one hand, some operators running deep price promotions, introducing stripped down packages with less channels to attract or retain customers, and on the other hand, other operators are offering pay-TV bundled with fixed broadband to provide further technological capabilities adding value to their offers and adapting to new ways of watching TV,” added Teligen Benchmarking Consultant Edouard Bouffenie.

 

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