Market Weighs In On Skinny TV, New TV Packaging

Paying for TV networks just took another haircut in the eyes of some consumers.

TiVo research now says many pay TV subscribers value a network of around $1.50. Given that consumers focus -- more or less -- on around 10 channels, that means a big $15.30 a month for the big TV ecosystem. Looking at slightly bigger packages, say 20 channels, TiVo said this would come to $32.92.

All that generally seems to be much lower than other studies where subscribers believe a fair price for a skinny bundle of networks might be say $50 or $35.

Traditional TV companies still hold all the cards -- not the least of which is that all this is tough to figure out what exactly to buy.

A complex number of individual network apps, different levels of digitally delivered TV network packages and other combinations -- which might also include set-top devices, such as Apple TV, Roku and video game platforms -- add to the confusion.

Does any kind of marketing spell this out?



Perhaps all pay TV providers should adopt a simple universal price per network model. For example, according to TiVo, CBS is valued at $1.55 by consumers, Comedy Central $1.62; and The Weather Channel at $1.36. The differences are small here relative to all channels.

That said, to be fair, networks have way different levels of “popularity” that need to be figured into overall retail metrics: CBS, for instance, has a 70.1% popularity number; Comedy Central, 43.8%; and Weather Channel 42.4%.

And then there are the outliers: Advertising-free premium TV channel HBO, for example, is valued at $3.13 (with a popularity number of 45.2%)

If the traditional pay TV system might be nervous they might not be showing it because all are considering -- if not readying -- their own digital skinny TV network bundles. Given many operators already extensive broadband holdings, it looks to be an easy move.

Right now, if consumers are considering, for example, the Sling TV skinny bundle -- and it doesn’t have all that you are looking for -- would you go out and buy a standalone network app to complete your TV network needs?

Seems like a reasonable approach. But what does the math say?

And if you are not up to that, what does the marketing tell me?

4 comments about "Market Weighs In On Skinny TV, New TV Packaging".
Check to receive email when comments are posted.
  1. Ed Papazian from Media Dynamics Inc, November 17, 2016 at 12:02 p.m.

    I think that a "fair" price for a new car is $5000 but that doesn't mean that I'm going to find one at that price---or remotely close to it--- that is worth buying. Does anyone take studies that ask consumers these kinds of questions ----without any grounding on how the TV content development and networking system works, its costs, profitability,  etc, ---seriously?

  2. John Grono from GAP Research, November 19, 2016 at 4:51 a.m.

    Ed, what do think would be a fair price for research of this ilk?   Fifty bucks?

  3. Ed Papazian from Media Dynamics Inc, November 19, 2016 at 8:45 a.m.

    John, that sounds about right to me.

  4. Jason Anderson from Lucky Rock Media, November 20, 2016 at 11:51 a.m.

    Will there be any end to consumer surveys indicating that users would love more entertainment for less money and want everything exactly how they'd like it?  In the real world, it's impossible to create a "universal" per-network price, especially considering the wide variety of rights (pay TV, streaming, etc.) and the relative value of each network within lineups and as standalone products.  One wonders why Tivo even bothered to conduct this research other than to be perceived as understanding "entertainment trends".

Next story loading loading..