[opendtv] IPTV has an uphill battle against Cable, Satellite in the U.S.
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: <opendtv@xxxxxxxxxxxxx>
- Date: Fri, 5 Oct 2007 16:07:53 -0400
This article claims that "only" 82 percent of households use pay-TV. Which means, either the number has a large margin or error or pay-TV households are on the decline. Some people who enjoy drama would get alarmed. What does it mean when more than 3 percent of pay-TV households appear to have jumped ship in one year? Is this a trend? The article does say, though, that by 2011 the percentage should have almost reached what we were told was the percentage almost 10 years ago. I'm confused. Maybe that's how you convince people that everyone is going to pay TV. Every few years, you simply reset the percentage clock back by a large step function, and then lull them into believeing that the trend continues to be on the rise. Clever trick. A sawtooth function. Not that Verizon's FiOS qualifies as IPTV, but it is a telco-provided TV distribution service. As far as I can tell, they priced the service right up there with cable and DBS. Even people who shift from cable to FiOS don't do so for the price difference, as far as I have been able to determine. They do it for a number of reasons, none of which is that they expect a lower monthly bill. Bert ------------------------------------------------ http://www.digitaltvdesignline.com/news/showArticle.jhtml;jsessionid=0UO OOMMJQ0X3KQSNDLOSKH0CJUNN2JVN?articleID=202200171 October 02, 2007 IPTV has an uphill battle against Cable, Satellite in the U.S. By Antone Gonsalves Internet protocol TV services, which are offered by telecom companies, face in the U.S. a saturated pay-TV market that will require attractive pricing to lure consumers from cable and satellite services, a market research firm said Monday. Fully 82% of all U.S. households reported having a pay-TV subscription in 2006, according to a survey by Gartner. The researcher forecasts that number to increase to 84% by the end of 2011. Currently, fewer than 1% of the total pay-TV subscribers subscribe to a telephone company for IPTV service, Gartner said. However, that number is expected to increase to almost 8% by 2011, mostly at the expense of subscriber loss from the cable companies. One area of intense competition among service providers will be in delivering high-definition content, as more households upgrade to a HDTV set. Nearly 40% of all pay TV households surveyed have either local or cable high-definition channels included in their monthly pay-TV service, according to Gartner. Another competitive area is the interactivity features with pay-TV subscriptions. The number of households using those features has increased during the past year to 15% from 9%. Interactivity includes program guides, a channel or service with on-demand content, and advertisements where the user can click to request information. "Many of these increases in feature adoption can be attributed to the fact that the entry of IPTV into this market has caused the competition to raise the ante," Gartner analyst Amanda Sabia said in the analyst's report. To gain subscribers, IPTV providers are going to have to market highly competitive, low-price offers for feature-rich packages that combine pay TV, broadband, telephone, and mobile phone services. What is included in the video component of these bundles also would be critical to IPTV adoption, Sabia said. "All the pay-TV providers will offer basically similar content," Sabia said, "but those IPTV providers that differentiate their offerings and are attentive to qualitative factors, such as quality of service, and that provide positive customer experiences will succeed in this well-established marketplace." All material on this site Copyright 2006 CMP Media LLC. All rights reserved ---------------------------------------------------------------------- You can UNSUBSCRIBE from the OpenDTV list in two ways: - Using the UNSUBSCRIBE command in your user configuration settings at FreeLists.org - By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word unsubscribe in the subject line.
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