Perceived Value of Pay TV Drops

March 5, 2013
According to TDG Research, the value of traditional pay TV services - whether provided by cable, satellite or telco TV - appears to be waning. While close to 90% of broadband subscribers also subscribe to pay TV, the perceived value of the service relative to pr...
According to TDG Research, the value of traditional pay TV services - whether provided by cable, satellite or telco TV - appears to be waning. While close to 90% of broadband subscribers also subscribe to pay TV, the perceived value of the service relative to prices paid has declined in the last 12 months.For example, in 2012, 55% of pay TV subscribers rated their service as a good value, meaning they believe the benefit they received was worth the money spent. In 2013, that percentage had declined to 49%. The percentage of pay TV subscribers who rate the value of their service as "extremely good" declined from 31% to 25%. The numbers are based on a survey of 2,000 U.S. adult broadband users."With prices for traditional pay TV services on the rise, it makes sense that consumers would second guess the value of these subscriptions," said Michael Greeson, founding partner of TDG. "Though value has remained high for decades, in the last year perceptions seem to be waning. Without doubt, this is due to continued economic uncertainty, but our research continues to show that the availability of alternative video sources is weighing more heavily on consumer perceptions than many believe."