Thursday, January 5, 2012

9% of U.S. Consumers Have Abandoned Video Service

About nine percent of U.S. respondents to a Deloitte survey say they have stopped buying video entertainment subscriptions from cable, telco or satellite providers, while another 11 percent report they are considering doing so.

Perhaps the important finding is why people are considering doing so. The 11 percent who report they are considering abandoning subscription TV services say they now can watch almost all of their favorite shows online.

One would guess that, as typically is the case when product substitution occurs, that the first “switchers” are users for whom the existing solutions have low value, compared to product price.

The classic example is the person who doesn’t watch much television in the first place and does not have children or other family members who do enjoy television, making a $100 a month fee “high” in relationship to value.

In the case of the "typical end user," video cord cutting seems to be more of a barrier than some might think. Highly-motivated end users might put up with quite a lot of hassle to avoid buying video. For most, such efforts will be too much bother. 9% of U.S. Consumers Have Abandoned Video Service - Carrier Evolution

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