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Cable Technology Feature Article

October 30, 2009

Report: Service Bundling Proving an Advantage for Telcos

By Calvin Azuri, TMCnet Contributor

Recent research by Heavy Reading has revealed that Pay TV bundling strategies are paying off for telcos.
The 2009 survey “Making TV Pay: The Telco Challenge” details service provider preferences, satisfaction levels and churn drivers. It will be presented by Heavy Reading research analyst Aditya Kishore at TelcoTV09.
The survey reveals that service bundling is becoming a real competitive advantage for telcos. According to Kishore, service bundling has been an inherent capability of telcos, and it appears that effective marketing strategies, combined with pricing, improved customer service, and faster and more reliable service is enabling telcos to stay competitive. The 2009 survey contains information about consumer adoption of over-the-top video, with insight into its market disruption potential.
The new study analyzes changes in consumer thinking, helping companies across the IPTV (News - Alert) value chain to identify current market trends. This will essentially enable more targeted, cost-effective marketing programs and service offerings.
The research also emphasizes consumer perceptions of telco TV service providers and their newest consumer video services offerings. Video service providers will be able to get an insight into the services required to gain new subscribers and keep existing ones in the increasingly competitive market.
The study covers important issues like current pay TV subscriptions, length of tenure, and selected providers. It also covers primary decision drivers for selecting current pay TV providers as well as churn drivers and reasons for leaving previous providers. Satisfaction levels of customers with current services across criteria like price, channel choices, dependability and customer care are also contained in the study.
The survey results are based on 193 respondents who were asked about their pay TV services, their attitudes toward those services and the type of companies that provide them. The new research addresses changes in subscribers’ mindsets over the last 12 months, comparing last year’s findings with the current survey. It identifies changes in consumer attitudes, their interest in new digital applications and their willingness to consider a new pay TV provider.
The research arm of Light Reading (News - Alert), Heavy Reading provides comprehensive communications research, market data and technology analysis. Heavy Reading focuses on providing telecommunications professionals with the hard data and competitive analysis required to make critical technology decisions.

Calvin Azuri is a contributing editor for TMCnet. To read more of Calvin’s articles, please visit his columnist page.

Edited by Marisa Torrieri