Pay-TV providers missing the middle market for gaming
December 17, 2009
Premium pay-TV gaming features do not currently maximize the market's revenue potential, according to a report from international research firm Parks Associates
Many pay-TV providers, including Comcast, Cablevision, DISH Network, and DirecTV, offer premium packages that include simple, single-player games. The report finds roughly 5 per cent of broadband households in North America and Western Europe are willing to pay about $5 per month for a premium gaming feature, the current average cost per game.
The number of subscribers would increase threefold if cost per game were lowered to $2.50. In the US in particular, the boost in adoption rates would push annual revenues for single-player TV games over $300 million. Every country surveyed had similar growth in interest except the U.K., where the adoption increase would not compensate for the lower price point.