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?