nScreenMedia OTT multiscreen media analysis

nScreenNoise – Why people will not put up with big pay TV bundles anymore

nScreenMedia Video Podcast

Over 80% of consumers want to pick the channels in their pay TV bundle. Demand for this flexibility will continue to increase, but consumers are not ready for full a la carte TV.

Chapter 1: The demand for a la carte pay TV bundles increases (0:36)

TiVo data shows that the demand for a la carte selection of all channels in a pay TV bundle has increased 8%, to 81%, since 2015. People want 22 channels in their bundle, though studies have shown most people only watch at most 17. They are willing to spend $33 per month for those channels.

Chapter 2: What’s driving the increase in demand (2:08)

One of the reasons consumers want to select only the channels they want to watch is because they think they will pay less. They will likely save much less than they hope. For example, many people include HBO in their list of favorite 22 channels but say they are only willing to pay $3 a month for it. HBO costs $15 per month, whether it is purchased as part of pay TV or directly online.

The web has taught people that they can buy channels that match their interests much more precisely. However, that is not true of all SVOD services. For example, the category leader, Netflix, has many shows that an individual user may have no interest in at all.

Chapter 3: Consumers do not want true a la carte selection (5:48)

There is a way for consumers to get true a la carte today. If they purchase or rent the movies or shows they like from online stores like Amazon and iTunes, they pay for only the content they want. However, online rentals are declining, down 17% in 2017, and electronic sales did not grow at all in 2017. Excluding

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