M+E Connections

A new survey from TiVo-owned Digitalsmiths found that consumers are willing to pay right around $1.50 per network channel if they were available as part of an à la carte package, with 71% of all respondents listing ABC as their top choice. The top five named among the survey’s 3,100-plus respondents also included CBS (70%), NBC (65.5%), Discovery (62%) and History (60%), with all five also right around $1.50 each.

The report also asked a new question: “If Netflix or Hulu offered a free TV service requiring viewers to watch commercials, would the respondent consider using it?” The results: 69% answered yes, with 83.3%saying they were willing to watch one to four commercials in a 30-minute period. “Of those uninterested in a free service with commercials, it is interesting to note that 14.3% are open to commercials if content is personalized to their interests and/or viewing preferences,” the report reads.

In the report, TiVo’s Data Science Team found a correlation between those who want an à la carte pay TV offering, and also would use a free streaming service with commercials, offered by Netflix or Hulu. “While it was apparent that a large population (78.0%) of respondents desire à la carte pay-TV, what the Data Science Team found striking was that of those respondents who want à la carte, 75.8% would also use a free streaming service,” the report read.

“While the industry has talked at length about how cutting pay-TV service in order to bundle various video services can often cost more than a pay-TV package, TiVo’s survey reveals that this may actually be what consumers want,” TiVo said in a statement. “Is the winning combination an à la carte package of about 18 channels for $29.46 per month, plus a free streaming service with commercials?”

The report found that 82% of respondents have a pay TV service, though among those who don’t, nearly 18% had cut the cord in the last year, with cost (83%), the availability of streaming options (59%) and digital antennas (28%) being the top reasons why.

“While it may come as no surprise that price is the top factor, TiVo interprets the data to mean that pay-TV providers should get creative with not only their packages, but also their strategies for marketing these offerings,” the report reads. “After identifying subscribers at risk for cutting service, pay-TV providers must ensure that packages targeted to this group are enticing, and strong enough to combat the option of using an antenna to receive TV.

“Lastly, it’s no secret over-the-top (OTT) services are a major factor, but pay-TV providers have the upper hand due to depth and breadth of content, such as sports, live events, award shows, etc. It is imperative to emphasize key market strengths to these value-sensitive customers.”