JUPITERRESEARCH IPTV STUDY REVEALS MORE THAN HALF OF CONSUMERS REGARD PRICE AS MAIN DRIVER FOR SWITCHING PAY TV SERVICES(New York, NY - February 22, 2006) - JupiterResearch, a division of Jupitermedia Corporation (Nasdaq: JUPM), finds that 52% of consumers would switch pay TV services if they could get a better price for the same channel selection. According to a new report entitled: "IPTV: Simple Benefits, Not New Technology, Most Effectively Compete Against Cable", JupiterResearch reveals what consumers regard as the most important elements in pay TV services, and challenges phone companies and others face as they begin to deploy competitive TV offerings. JupiterResearch is a leading authority on the impact of the Internet and emerging consumer technologies on business.
According to the JupiterResearch report, following cheaper prices, the option of a la carte channel selection proved the second strongest motivator for switching pay TV services, attracting 46% of consumers. There is little interest in high definition programming; only 6% of consumers prioritized this feature. And only 3% of consumers are attracted to a greater selection of VoD services.
"While Internet Protocol TV proponents get caught up in the futuristic possibilities of the technology, consumers remain much more levelheaded about what they look for in a TV service," said Joseph Laszlo, Research Director at JupiterResearch and author of the report. "Competitors looking to deploy IPTV should avoid overwhelming the consumer with Jetsons-like 'TV of the future' and focus, instead, on delivering real value in terms of TV of the present," added Laszlo.
According to the JupiterResearch report, potential new entrants to the U.S. TV market face enormous challenges in undertaking billions of dollars in investment to build out infrastructure and design services capable of attracting subscribers in a saturated market. Sixty six percent of current pay TV subscribers are satisfied with their service and will require aggressive pricing, better channel selection or other clear benefits to induce switching. However, the millions of customers using cable-provided phone services create a threat to phone companies' core business and leave them with little choice but to match cable's triple-play bundle of voice, television and Internet services.
"Although a la carte channel selection is highly feasible over an IPTV infrastructure, the business case remains uncertain, and media companies are likely to resist such service plans," said David Schatsky, Senior VP of Research at JupiterResearch. "To address a la carte's popularity, IPTV services should focus on giving consumers greater choice and control over their television experience, if not true a la carte," added Schatsky.
The complete findings of this report are immediately available to JupiterResearch clients online at www.jupiterresearch.com. For additional information on the report JupiterResearch's Wireless Service offerings visit www.jupiterresearch.com or contact Kieran Kelly, Vice President of Global Sales and Client Service, at 1-800-481-1212 or firstname.lastname@example.org
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