Tag Archives: Pay TV

Netflix Doesn’t “Cannibalize” Regular TV

Netflix Norway

Source: Huffington Post

The rising popularity of cord-cutting has got pay TV providers worried about their customer base and scrambling to give their viewers a reason to stay.  Netflix seems to be growing into traditional TV’s main competitor for video content.

However, a new study by TiVo Research and Analytics (TRA) shows that most viewers use the subscription VOD service as a supplement to, and not a substitute for, regular TV.

Collecting data from nearly 10,000 respondents, the study showed that there was “no significant difference” in amount of regular TV watched between those who subscribe to Netflix and those who do not.  And with over half (57%) of the respondents saying that they subscribed to the VOD platform, Netflix may not yet pose as big of a cord-cutting threat as cable/satellite companies think.

Mark Lieberman, CEO of TRA, says that the study’s results are clear and positive, but do not necessarily bode well for the future of traditional TV:

“Our data show that Netflix is not currently a substitute for traditional television, but offers a way for TV lovers to watch more of the kinds of programs they love. The future of television may tell a different story, but as of today we’ve found that the Netflix subscribers in our study are not watching less traditional TV.”

The future may indeed tell a different story, as another study showed that 20% of Netflix users in the US have already cut the cord.  However, as much of a concern cord-cutting OTT users are for pay TV companies, it’s not time for them to go into crisis mode just yet.  Traditional TV providers still have broadcasting rights to major, one-time events – most notably sports.  As long as they can keep hold of those rights, they always have a chance.

Referenced from RapidTVNews and WebProNews

DVR Competition Heats Up

As live TV viewership is declining seemingly by the day, the focus of US pay TV providers has shifted from beefing up their channel packages to creating and improving their DVR options.  Cablevision, a main cable provider for New York City area, recently announced its improved DVR recording capabilities, allowing customers to record 10 programs at once.  (By the way, bhaalu by Right Brain Interface has no limit for simultaneous recordings.)

This new development, alongside increasing storage to 75 hours of HD programming, is part of an effort to combat similar features offered by other providers, says Steve Donohue:

“In addition to helping Cablevision compete with the Verizon Media Server which the telco is developing with Arris, Cablevision’s network DVR gives it a product that tops the recording capabilities of DirecTV’s Genie DVR, which has five tuners, and Dish Network’s Hopper, which can record up to six programs simultaneously thanks to its Primetime Anytime feature.”

viewing-share

Source: TechCrunch

Although live TV still accounts for 52% of all viewing time in the US, that number drops to 41% for people 18-34 years of age, according to recent studies.  This makes cable/satellite providers tremble in their boots – as it should.  That age group is a key market that sets the trend for future consumer behavior, and they can pose a real problem for pay TV providers should they decide that their subscriptions aren’t worth the money.

DVR services may be the new style of pay TV subscriptions, as live TV air times are conflicting more and more with viewers’ daily schedules.  Right now, customer loyalty to TV providers is hanging by a thread, so maybe its time for some new blood to move into the market.

Referenced from FierceCable, bgr.com, and TechCrunch

Is Pay TV Worth the Money?

waste-of-money

According to a recent survey conducted in the US by CouponCabin.com, 45% of people think paying for TV is a complete waste of their money.  Of the respondents, 11% said they’ve cut the cord on their subscriptions, and 8% said they never had one to begin with.

Not surprisingly, 43% of those who have chosen to keep their subscriptions say its solely because of sports, and 15% of subscribers said they would never consider cutting the cord.  Because of this demand, one can deduce that sports broadcasting rights account for a large portion of the ridiculous monthly bills people are willing to pay. 

Jim O’Neill says subscribers’ are willing to cut the cord if certain conditions present themselves:

“Of course, never say never… because, among current subscribers:

  • 56% said they’d cut the cord if there were other, less costly, alternatives.
  • 55% said they’d cut the cord if they could no longer afford it. And,
  • 17% would jump is there were alternative ways to watch live broadcasts.”

Customer service is also a huge issue, with the goal being to find a service that is the least infuriating to deal with.  The goal as a provider, then, is to form a system that minimizes customer distress, as an executive at Rogers Communications attests:

“The truth is: We’ve been in the business long enough to have annoyed every one of our customers at one point or another. It kind of goes with the territory.”

Full article at theConvergence.tv