Cable Subscribers Frustrated, Up Channel Surfing, Streaming
- by Wayne Friedman , October 8, 2012
Cable and satellite TV service subscribers may not be cord-cutting or cord-shaving to any degree, according to one study, yet high levels of channel-surfing and growing use of services like Netflix
could lead to more problems.
Almost 70% say they are "always" or "sometimes" frustrated in trying to find something to watch, according to video search technology company Digitalsmiths. It
found that 48% of cable customers say they spend 10 minutes or more trying to find something to watch -- channel-surfing. Nearly 30% say they spend even more time flipping on the TV remote -- 10
minutes to 20 minutes.
In relation to this, the study says just about 50% of TV viewers watch less than 10% of time-shifted viewing -- which means more channel-surfing. (Other TV
researchers now say around 45% of U.S. TV homes have DVR time-shifting technology.)
The survey also notes the good -- but not great -- news for the pay-TV business. The bulk of cable
subscribers -- 59.5% -- say they are "satisfied" with their cable service; and 21.8% are "very satisfied;" with 18.7% "unsatisfied." Of those who are unsatisfied, 74% say the biggest problem is rising
monthly cable/satellite rates.
Breaking down current cable/satellite monthly rates: 20.3% pay between $101 and $125 a month; 19.9% pay between $76 and $100; 17.9% pay $150 or more. When
asked if they would change their cable/satellite provider in the next six months, 61% say they would not change their cable/satellite service provider; 27% say "maybe."
When it comes to
lowering monthly bills, consumers would look to cut premium TV channels like HBO, says the survey, which benefits over-the-top (OTT) services including Redbox, Netflix, Vudu, Amazon, Blockbuster, or
iTunes.
One area that the Digitalsmiths study concludes has been suffering -- and one that could still could be an area of opportunity -- is video-on-demand services. When surveying
consumers on monthly VOD activity, 78% of respondents said they made "zero" purchases; 10.5% said they made two or more purchases. The survey says that 49% of consumers have trouble searching for VOD
offerings.
According to the survey, roughly half of consumers surveyed used Redbox, Netflix, Vudu, Amazon, Blockbuster, iTunes or another similar service, watching and/or purchasing one to
three movies per month.
The study concludes: "Every month, therefore, pay-TV providers miss out on roughly $3 to $15 per subscriber across half of their subscriber base, representing
millions in lost revenue."
I believe the study suggests an even more terrifying trend. Viewers have tired of the "sameness" of current shows. Even worse, as Fred Silverman said, those shows are on balance, awful. Viewers then surf, find more underdone, well produced, boring rehashes of the same drivel. When a proper alternative is available online, HBO will be gone. It's all up to the venture capitalists to realize that long-form content is where the money will be. Netflix, Amazon and Hulu are just dipping their toes into the mix, distracted by their core businesses, but once the flood gates open, it will be all over. Traditional media will never get it in time. It has taken VCs in unbelievable amount of time to recognize this, but Chris Sacca showed he is starting to get it at The Wrap's Grill event.
I disagree with the panic. When I did research into Satellite TV back in the 1990s, this same frustration already existed - and at high levels. Over time, I've come to realize its not necessarily a problem with program availability..but with the vagaries of human desire. At any point in time, there may or may not be ANY program that will satisfy. Yet it's easy to "blame" the TV, the networks, or those "stupid other citizens that demand stupid programming". But really... Has there ever been a time with more vital range of options on TV? Not really. A hint that this is a reality of the human soul more than a defect that technology can fix. Which means: Streamers beware. It's easy to promise to solve this. But it's impossible to solve - and I overpromising will lead to your eventual demise.