Free Content Wins As Pay-TV Customers Cut Subs In Crunch: Research

Almost a fifth of UK pay-TV subscribers plan to cut their outlay in the next year, with Freeview and web video proving a cheaper alternative in these troubled economic times, according to new research out today. It’s no real surprise that new figures from Continental Research show that consumers are cutting back on things like paid-for movies and sports channels: six percent of 1,022 surveyed have already decided not to sign up to additional services as a direct result of the crunch. The report, bizarrely titled TV 3.0: The Digital and Internet TV, found that 13 per cent said they were “likely to” get Freeview in the next year for the same reason and seven percent said they planned to stop their subscription TV service altogether.

BSkyB’s (NYSE: BSY) customer signups have actually proved resilient this year, but it’s mostly on the back of growth in broadband and VOD, where both it and Virgin Media (NSDQ: VMED) are growing strongly; by July, more than half of all new Sky customers were paying extra for its Sky+ PVR. But if people increasingly expect to get their TV for free via Freeview and content in general for free online, why would they pay anything for flashy services from Virgin or Sky? Release (pdf).

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