Would You Pay Comcast $10 a Month for Online TV?
While watching Hulu and other premium online content on your big screen TV isn’t a threat to cable companies right now (TV watching is at an all time high, and getting high-quality content from PC to TV isn’t that easy yet), Comcast can see the writing on the wall, so last week it mobilized its own online video initiative to provide its customers with a way to watch premium TV programming online as part of a cable subscription. Comcast says this extension will be free (though there could be some pay-per-view elements). But according to research from The Diffusion Group (TDG), people will pony up for such a service.
TDG writes (emphasis theirs):
[A]pproximately 43% of consumers are to varying degrees interested in such a TV-to-PC service. Here’s the best part: they’ll pay extra for this privilege. In other words, they do not view a TV-to-PC video service as something they are entitled to due to the fact they are a Pay TV subscriber. … [T]o enjoy their TV content on their desktop and laptop PCs:
• 48% of those interested would spend as much as $10 per month above their current
Pay TV fees;• 12% would spend as much as $15 per month; and
• 7% would spend $20 or more per month.
TDG does some math and figures that Comcast could wind up with an extra $522 million in revenue each year by charging $10 a month. But that is contingent upon people paying — and customers not canceling another part of their service. People have gotten used to a free premium content online right now; I’m not sure how much more they’ll spend for ad-supported video. Plus, spending ten bucks a month for access to content stored online could negate my need for a DVR, for instance, or another cable box in the house.
Is there a price point sweet spot for you? If so, what is it? Would you drop other services?
Related research and analysis from GigaOM Pro:
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Dude, I’m flattered. You used my twitter. Or at least I’ll flatter myself that you did.
As someone who doesn’t subscribe to cable or satellite TV I’d at least consider the first 30 days — especially if I could get it to work on a smartphone. In the past I’ve found that no matter how much or little I pay to Comcast, it’s not worth the time wasted troubleshooting and waiting on hold.
Why would you pay for this when you can just buy a Slingbox? It lets you stream any channel from your cable or satellite tv online for free. Much better choice in my opinion.
I can’t believe I actually found a site worth talking about. I ordered the software for Online TV on my PC, and I get all the channels that’s advertised. Now I can firmly say, “if you look hard enough you will find reliable service. One happy camper right here.
The research was related to delivering full Pay TV service, includingall your linear TV programming from ESPSN, Disney, Discovery, etc. Think “TV service to the PC,” not “TV content put online.” Very important difference, as the price to be paid is in addition existing Pay TV fees. The PC is literally positioned as second TV screen, but served via an online property.
Please visit the link to read the larger piece.
@Michael,
Thanks for commenting! I actually called your office yesterday but no one answered (no voicemail option either). Perhaps I could have been clearer in the post, but I was looking at it as full TV service on your PC. What I watch is so limited, however, that I can already find most if not all of it online already.
I’d have no problem at all paying for access to cable programing coming to my PC. Would be great if it weren’t an add-on, but a service in itself though.
I would love to know where they find these people who are willing to pay for this content over and above their already high prices. They obviously don’t talk to anyone who has any idea what is going on with online video.
It can certainly be a service itself. This specific research just tested the concept as an additional expense, but we’re also doing research on the extent to which it could survive as a stand-alone offering without cannabalizing Pay TV revenues.
My goal is to leave Comcast behind. Wish I could for broadband. I see cable becoming like the music companies, they’ll eventually realize that by charging their customers exorbitant fees for product (for music it was the CD) they’ll lose any loyalty from the customer. We know when we’re being ripped off and respond accordingly.
Why would I pay for “free” tv?
No just no hell no.
Tv Has little or no value to me.
I could if I really wanted to buy a slingbox.
Or I could use Orb and with a simple script view tv
on my iphone over the internet. If I wanted to which
I do now. About the only “show” I need to see when I’m not at home is CNBC so I can keep track of the market.