Consumers Would Prefer Local Telco for Triple-Play Services
New Research from The Diffusion Group Finds that Telcos Top Cable Operators
When It Comes to Preferred Bundled Service Provider
June 13, 2006 (Dallas, Texas) - While cable companies remain the favored provider of stand-alone PayTV services, telephone companies top the list when it comes to a triple-play package of PayTV, telephone, and high-speed Internet service. According to Receptivity to TelcoTV among PayTV Subscribers - Primary Research and Analysis, a new report from The Diffusion Group, 33% of US PayTV subscribers would prefer to receive triple-play services from their local telephone company, compared to 29% who favor the cable company, and 30% than have no preference at all.
"There are sufficient numbers of ambivalent or dissatisfied cable and DBS subscribers that a competitive telco triple-play offering even slight cost advantages could be disruptive to the market balance," said Dale Gilliam III, an analyst with The Diffusion Group. "This is good news to telcos looking to offer their own video services and triple-play packages."
"What is most interesting about this new data is not only that telcos topped cable in triple-play preference, but that another one-third of PayTV subscribers could care less which company provided their video, Internet, and telephone services," said Michael Greeson, CEO of The Diffusion Group and co-author of the report. "Loyalty to current PayTV service providers is unlikely to be much of a barrier for telcos entering the PayTV and triple-play space."
Greeson posits that this is due in part to the sustained competitive presence of DBS providers who have already shaken consumer loyalty among cable subscribers such that new market entrants don't have to focus as much energy and resources on dislodging existing customers - this is great news for telcos set on offering video services.
TDG's latest report, Receptivity to TelcoTV among PayTV Subscribers - Primary Research and Analysis, features the results of an April 2006 study of more than 1,500 US PayTV households regarding interest in TV and bundled services offered from their 'local telephone provider.' Central to the report is an analysis of how interest fluctuates relative to different levels of monthly cost savings, a variable which weighs heavily upon interest in TelcoTV offerings.
The report is available at TDG’s website or by contacting the firm at 469.287.8050.
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