Cable Customers Want Change, But Seem Unwilling to Pay

A new study released yesterday by PricewaterhouseCoopers indicates that 44 percent of today’s consumers would prefer an a la carte system, while 73 percent note they would prefer a la carte or at least more customization of current packages. Notably, a mere 14 percent of consumers are satisfied with the status quo. However, since only 38 percent said they would be willing to pay more than $3 monthly per channel, it does not seem likely that TV providers would stray from bundling.

“When it comes down to it, though, even customers who want such changes aren’t willing to pay much for them,” explains The Hollywood Reporter. “Sixteen percent, for example, say they won’t pay more than 99 cents a month for a channel they want, while 24 percent will pay $1.99 and 22 percent will pay $2.99. At $8 a month per channel, the highest option offered in the PwC survey, only 5 percent say they’d pay up.”

Additionally, the PwC study shows that more than half of respondents would not pay more than 99 cents per month for an individual show, although 20 percent would pay up to $1.99 and 12 percent would pay $2.99.

Focus groups complained about channels they never access and would prefer to lower their monthly bills by eliminating the access to certain channels. “I have a bunch of channels that just sit there,” said one participant. “If they could take them off and lower my bill each month, that would be great.”

In regards to a la carte, 65 percent say they would be interested in subscribing to 10 or more channels. The most popular responses involved basic cable offerings, premium cable, sports, lifestyle, news, premium sports and children’s programming (in that order).

“With TV in such a state of flux, companies must revisit their business models,” suggests PwC entertainment, media and communications analyst Matthew Lieberman. “The winners will be those that offer custom services or curate content in the most appealing ways.”

“The comprehensive PwC report also explores ways that consumers currently watch television, how they discover new shows and the amount of advertising they’re willing to view in lieu of subscription fees,” notes THR. “In regard to the latter, the rule is simple: The smaller the screen, the fewer the number of ads viewers will tolerate.”

In addition to programming choices and subscription fees, PwC addressed mobile viewing, DVRs, impact of social media, and streaming services such as Netflix, Amazon and Hulu.

“This study shows that during the next five years, an even greater portion of viewing of and interaction with TV and film content will take place on multiple screens and devices,” says Lieberman. “Hollywood must adapt accordingly.”

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