Pay-TV customer needs and wants are purposely ignored — because the advertiser is the focal point of the legacy business model. In a report that attempts to quantify the costs of an à la carte pricing for cable television, Needham & Co.’s Laura Martin estimates that $45 billion of TV advertising would be at risk under such a change.
Along with 1.4 million American jobs, $20 billion in taxes paid by such cable operators as Comcast (CMCSA) and Time Warner Cable (TWC), and $117 billion in market capitalization.
BT has stepped up its efforts to attract TV customers with a major launch of new channels and by offering customers the chance to build their own TV package made up of just the content they actually want to watch.
BT’s core Entertainment pack is just £7 a month and includes 18 popular pay TV channels, such as Discovery, National Geographic, Comedy Central and Gold.
via IP&TV News
Consumers in 2010 staged a mini-revolt, if you believe some sources, to redefine their TV viewing habits. Just as TiVo and all the DVR iterations that followed ushered in the era of time-shifted TV viewing, consumers began to experiment in TV place shifting as well, looking for ways to watch — and pay for — only the content they wanted, when and where they wanted it. Bundles? Increasingly coming under fire and even Hollywood — which jealously guards the gate to its content kingdom — is starting to take notice.