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Unedited press release follows:
Consumers in North America and Western Europe Interested in TV Everywhere
New International Research from Parks Associates Analyzes Multiscreen and Streaming Viewing Trends
DALLAS–Parks Associates today released findings from a new multicountry consumer study showing 15-30% of broadband households in North America and Western Europe are interested in a TV Everywhere solution. The research firm’s analysts say as multiscreen solutions and streaming options become available to more consumers, these services will be valuable in retaining and acquiring subscribers, but limited in their ability to expand ARPU.
Parks Associates’ new study Digital Video: Three Screens and Beyond found among the countries surveyed, the U.K. has the highest level of interest in a TV Everywhere solution, with nearly 30% of broadband households interested in a service allowing them to view TV programming on multiple devices, including tablets, smartphones, and connected CE.
“In the U.S., Netflix Watch Instantly is having a major impact on TV viewing trends, with 22% of all broadband households using this service, more than those who use Blockbuster retail stores,” said John Barrett, Director, Research, Parks Associates. Analysts are available to comment on Netflix’s strategy as well as this week’s expected announcement from Dish Network and Blockbuster on a new streaming video service.
The study outlines how providers can leverage TV Everywhere to increase net additions and entice pay-TV subscribers to consolidate mobile phone and Internet services. Roughly 15-30% of broadband households are willing to pay additional fees in order to obtain this service. However, one-third of all broadband households would switch to a provider offering free TV Everywhere, and 10-20% would consolidate their mobile phone and Internet services with a provider if necessary to obtain TV Everywhere. As a result, its potential to drive ARPU gains directly is limited.
“You can charge additional fees for TV Everywhere as long as nobody else offers it for free,” Barrett said. “It’s a great example of the prisoner’s dilemma in economics. As soon as one player offers it for free, everybody will be forced to do so, or they will start bleeding subscribers.”
Parks Associates analysts will present on TV Everywhere and multiscreen video at CONNECTIONS™ Europe, November 8-9, in Amsterdam. Visit http://www.connectionseurope.com.
Digital Video: Three Screens and Beyond surveyed 8,000 consumers in seven countries, including the U.S., Canada, the U.K., Germany, Spain, Italy, and France. For information, visit http://www.parksassociates.com, or contact 972-490-1113, firstname.lastname@example.org.
About Parks Associates
Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.
Each year, Parks Associates hosts executive thought leadership conferences CONNECTIONS™, with support from the Consumer Electronics Association (CEA)®, CONNECTIONS™ Europe, and Smart Energy Summit.