TDG Releases New Report on Early Demand for ‘TV Everywhere’ Services
New Study Distinguishes Between and Profiles Two Segments of Early TVE Adopters
July 14, 2010 (Frisco, TX) – A new report from TDG suggests that the era of multi-screen TV delivery is upon us, having rapidly evolved from a “hot topic” to a legitimate and essential market strategy. According to the new research, 60% of adult broadband users (about 95 million consumers) are enthusiastic about TVE services, while 34% (about 54 million) are willing to pay at least $5 extra per month to enjoy such access.
“Current TVE-type offerings remain relatively fledging services with little in the way of compelling content,” notes Michael Greeson, TDG founding partner and author of the new report. “That’s to be expected from a service breaking new ground and no doubt feeds operator belief that these services should be viewed as a free value-added service to existing residential TV subscribers as opposed to a new service capable of generating additional revenue.”
As time passes, Greeson expects incumbents will become more likely to “pull a Hulu” – that is, wean customers into using the free site until demand and breadth of content can support the introduction of a premium tier worthy of an additional monthly fee. New video leader, Netflix, is expected to follow Hulu’s lead and introduce a premium streaming tier that features high-value Hollywood content. Incumbent PayTV operators will closely watching how this experiment plays out.
According to TDG’s data, consumers would respond positively to a TVE offering that included access to their favorite TV content, all on demand. For example:
- 39% of PayTV subscribers would pay $5 or more each month to access their favorite TV programs on their PCs.
- Among this 39%, about half would pay $5 extra each month, about one-third would pay an extra $10 per month, and about one-fifth would pay more than $15 per month.
As TDG has stated on numerous occasions, demand is such that by failing to charge an additional fee for multi-screen access, operators could be leaving tens of millions of dollars on the table.
Then again, the operator rationale for introducing TVE services (that is, to reduce churn and fend of emerging new video threats) is validated by this same research. Among the segments profiled, the availability of multiscreen TV services is likely to deter home TV cancellation among four in ten would-be cord cutters.
TDG’s new report, Early Demand for TVE Services – A Consumer Snapshot, mines recent primary research focused on the video viewing behavior of adult broadband users across multiple screens including TVs, PCs, and mobile devices. The report sizes the early market for TVE-like services, and profiles two key early market segments, Enthusiasts and Optimals. For more information about this new report, please contact our Research Services Team at 469-287-8050.
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