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Study: Perceived Value of Pay-TV Declines

4 Mar, 2013 By: Chris Tribbey

During the past 12 months, consumers’ perceived value of traditional pay-TV services like cable and satellite has declined, with subscribers pointing to rising prices for service and a wider selection of over-the-top video services.

As of February, 49% of pay-TV subscribers rated their service as a good value, down 10% since the end of 2012. The percentage of subscribers who rated their service “extremely good” was down from 31% to 25%, according to research from The Diffusion Group.

“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 seems 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.”

Greeson noted that nearly 90% of American broadband subscribers still subscribe to one pay-TV service or another.

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