OTT Package Prices Drop

A first-quarter 2017 survey from TiVo says the average price that a U.S. consumer will pay for top 20 channels is $28.31 per month -- a 14% decline over the last two quarters.

When it comes 'self-selected’ channels, the average price that respondents would pay is $25.73 total per month for that package — or $1.62 per channel, per month. The survey was conducted with 3,081 adults 18 and older in the U.S. and Canada by a third-party service.

TiVo says the top five channels for respondents are ABC (58.4%); Discovery Channel (56.6%); CBS (54.1%); History (52.5%); and NBC (52%) -- and that these networks have continually ranked in the top five most popular in survey results since the second quarter 2016.

The next 15 top networks are: Fox, 54.1%; PBS, 51.7%; FX, 51.6%; A&E, 50%; TBS, 49.1%; TNT, 48.7%; National Geographic, 47.7%; Food Network, 47%; AMC, 46.6%; HBO, 46.3%; HGTV, 45%; ESPN, 44.5%; USA, 44.3%; Animal Planet, 43.8%; and Comedy Central, 42.6%.

Some 77.3% of respondents would like to pay for only the channels they want with the ideal lineup composed of 19 channels, per TiVo.

advertisement

advertisement

4 comments about "OTT Package Prices Drop".
Check to receive email when comments are posted.
  1. James Smith from J. R. Smith Group, June 14, 2017 at 11:02 a.m.

    Let's assume that networks are financially addicted to the monthly per-sub fee, which seems to systematically increase, cashflow.  Further, on the consumer side; they have channel repertoires of about 14-18 faves, that they don't know how
    much they pay per month for each channel, and their price sensitivity will continue even in the face of adding OTTs.

    Given existing cord shaving/cutting trends, dangers for niche channels, and the like...What's going to happen to those subscriber fees over-time?  And the business models they are tied to?

  2. Ed Papazian from Media Dynamics Inc, June 14, 2017 at 12:12 p.m.

    James, there is no doubt in my mind that the question you pose---which also applies to the network O&O and affiliated stations as well as their owned cable channels----has been seriously considered as a trade-off if the plan to launch the so-called skinny bundles, which are dominated by broadcast and cable establishement fare generates a substantial amount of streaming subscribers. In that case, it is likely that the lucrative retransmission" fees now bostering the networks' corporate profits will be somewhat impaired or may even diminish due to reduced cable/satellite distribution coversge. On the other hand, if millions of homes "cut the cord", the networks will,no doubt, share in the huge subscription fees thus garnered and, more important, the reduction of competitive channels will see a reversal of rating fragmenataion, which will mean higher ratings for the networks, their stations and cable channels---and more ad dollars. Whether this proves out is anyone's guess, but I suspect that the networks have made the correct decision. Now, let's see if they have the savvy to implement it.

  3. Paula Lynn from Who Else Unlimited, June 14, 2017 at 8:07 p.m.

    Nah, Comcast raises their prices every 6 months or so, if not for the service itself then the equipment that must be rented - shades of AT&T renting phones before you were allowed to buy them. (Then they charged more for them than you could buy in a store and when you told AT&T to pick up their phone, they never did which would cost them more than the damn phone.) Anyway, there is addiction to more profits (also get it while they can before OTT invades as competition), not customer service. 

  4. Paula Lynn from Who Else Unlimited replied, June 14, 2017 at 8:07 p.m.

    OTT is meant to be apps. ooops.

Next story loading loading..