Pay TV and Home Communication Services - US - March 2015
“With households trimming and cutting television service, providers will likely set sights on continued capital expenditure for and marketing of ultra-high speed internet. Significant questions hang over this strategy: do households need that speed, and how much more will they be willing to pay for it?”
– Billy Hulkower, Senior Analyst, Technology and Media
This report answers the following questions:
- How much speed do we need?
- Is DISH Sling TV a game changer?
This report covers subscriptions for television, home internet, and home phone service, including when these services are sold as bundles from the same provider and when sold individually.
The industry may be concerned about the potential cannibalization of existing subscribers as lower-cost internet-based MVPD (multichannel video programming distributor) options rollout, but fear of seeing potential losses from DISH Sling or other new services will not prevent them from occurring. The best response is to forge ahead in an arena at which providers excel – experimenting with new prices and plans to maximize revenue. The vast majority of households remain subscribers to all three legs of service, and continuing efforts to meet their changing needs will keep these subscribers within the existing system.
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