Is a cable price war eminent?

Will the cable revolution be televised?

This Tekrati post suggests that over two-thirds of pay television subscribers would be willing to switch providers if offered a discount.

The value-for-money result was perhaps the most important
finding of this study. It underscores a trend we have been seeing
for the past 18 months: a growing number of customers are
beginning to question the value of a “traditional” pay TV
subscription in light of expanded “over-the-top” offerings,
such as Hulu and Netflix.

Ben Piper, Director, Strategy Analytics Multiplay Market Dynamics

Consumer Loyalty:  Low, Tenuous

  1. 67% of subscribers reported overall satisfaction.
  2. Fewer than 22% of subscribers felt they were getting “value for money” that exceeded expectations.

Industry Disruption

Similar to a previous post on telephone providers, this could be a disruptive signal for Telco TV/IPTV providers. With mounting pressures from free internet platforms of Youtube, Hulu and paid sites like Netflix, Telco TV/IPTV could face a mounting downward trend in subscriberships.

See a Google Trend graph here.
See the same graph without Youtube here.

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