Table of Contents
Executive Summary
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- The market
- Total number of subs declines in 2014
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- Figure 1: Pay TV, home internet, and home phone subscriptions 2011-14
- Comcast leads
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- Figure 2: Service carrier for home internet, pay TV, and home phone service, December 2014
- Shifts in type of internet service mask slow down
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- Figure 3: Type of internet service used at home, February 2009-September 2014
- Average spend $141 per month
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- Figure 4: Mean monthly spend, by type of subscriptions, December 2014
- The consumer
- Bundles fall in 2014
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- Figure 5: Pay TV, home phone, and home internet subscription, January-September 2014
- Potential need to shift targets
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- Figure 6: Subscription to pay TV, internet, phone and bundled services, by household income, January-September 2014
- Satisfaction runs high
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- Figure 7: Satisfaction with current services, December 2014
- Limited interest in changing carriers
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- Figure 8: Changing service, December 2014
- What we think
Issues and Insights
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- How much speed do we need?
- The issues
- The insights
- Is DISH Sling TV a game changer?
- The issues
- The insights
Trend Applications
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- Trend: Minimize Me
- Trend: Who Are the Joneses?
- Futures Trend: Brand Intervention
Market Size
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- Key points
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- Figure 9: Pay TV subscriptions, 2011-14
- Figure 10: Home internet subscriptions, 2011-14
- Figure 11: Home phone subscriptions, 2011-14
Market Drivers
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- Key points
- Mobile as gateway to home internet subscription
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- Figure 12: Devices used to access internet at home, February 2009-September 2014
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- Figure 13: Devices used to access internet at home, February 2009-September 2014
- Gaps between use and subscription
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- Figure 14: Devices used to access internet at home, by age, January-September 2014
- Figure 15: Devices used to access internet at home, by household income, January 2014-September 2014
- Online gaming and streaming HD
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- Figure 16: Use of streaming HD and graphics-heavy video gaming, by age, December 2014
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- Figure 17: Use of streaming HD and graphics-heavy video gaming, by presence of children in household, December 2014
- Figure 18: Use of streaming HD and graphics-heavy video gaming, by intent to change service, December 2014
Competitive Context
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- Key points
- Rising number of options in sVOD
- High costs make households consider cutting the cord
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- Figure 19: Mean monthly spend, by types of subscriptions, December 2014
- Price chief reason for not subscribing
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- Figure 20: Reasons for not subscribing to pay TV service, by age, July 2014
- Content, promotions draw some cord-cutters back
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- Figure 21: Reasons for resuming pay TV service, by household income, December 2014
Leading Companies
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- Key points
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- Figure 22: Home internet, pay TV, and home phone service providers, December 2014
- Figure 23: Pay TV service provider, by household income, December 2014
Marketing Strategies
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- XFINITY
- DirecTV
- TWC (Time Warner Cable)
- DISH
- Verizon FiOS
- AT&T U-verse
- Direct marketing
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- Figure 24: DishLATINO direct mail, December 2014
- Figure 25: Comcast X1 direct mail, September 2014
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- Figure 26: Comcast customer marketing, March- October 2014
Innovation and Innovators
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- Bundling sVOD
- OTT MVPD
- Sony PlayStation Vue
- DISH Sling TV
- Standalone sVOD offerings
Qualitative Results – Internet Service
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- Key points
- Service selection
- Perceptions on adequacy of current internet speed
- Awareness of type of internet connection
- Awareness of and understanding of numerical standards
Qualitative Results – Pay TV Service
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- Key points
- Service selections
- Frustrations with current provider
- DVR service
- VOD service
- Search and discovery
Subscription
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- Key points
- Lower levels of subscription among 18-34s
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- Figure 27: Subscription to pay TV, DVR, internet, phone, and bundled services, by age, January-September 2014
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- Figure 28: Video-on-demand services, by age, January-September 2014
- Continuing need for lower-cost service
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- Figure 29: Subscription to pay TV, DVR, phone service, and bundled services, by household income, January-September 2014
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- Figure 30: Subscription to premium channels, by household income, January-September 2014
- Figure 31: Video-on-demand services, by household income, January-September 2014
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- Figure 32: Frequency of use of video-on-demand, February 2009-September 2014
Attitudes to Pay TV
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- Key points
- One in three opt for lowest-price
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- Figure 33: Factors in carrier selection, by age, December 2014
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- Figure 34: Factors in carrier selection, by gender and age, December 2014
- Distinct collateral for distinct demos
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- Figure 35: Factors in carrier selection, by household income, December 2014
- Vast majority satisfied
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- Figure 36: Attitudes and behavior related to changing pay TV service, by carrier, December 2014
- Time to get skinny
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- Figure 37: Attitudes favorable to internet-delivery of pay TV service, by age, December 2014
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- Figure 38: Attitudes favorable to internet-delivery of pay TV service, by gender and age, December 2014
- Figure 39: Attitudes favorable to internet-delivery of pay TV service, by presence of children in household, December 2014
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- Figure 40: Attitudes favorable to internet-delivery of pay TV service, by carrier, December 2014
Changing Service
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- Key points
- Narrowing the target
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- Figure 41: Changing service, December 2014
- Focusing on youth
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- Figure 42: Changed service in past year, selected demographics, December 2014
- Figure 43: Intent to change service, selected demographics, December 2014
- Higher-income groups ready to make a move
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- Figure 44: Plans to change service, by household income, December 2014
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- Figure 45: Average monthly bill, by household income, December 2014
- To switch or to cut?
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- Figure 46: Consideration for cutting pay TV service, by intent to change service, December 2014
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- Figure 47: Attitudes favorable to internet-delivery of pay TV service, by intent to change service, December 2014
- Role of price and promotions
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- Figure 48: Factors in carrier selection, by intent to change service, December 2014
- Role of internet in switching
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- Figure 49: Pay TV selection based on desired ISP, by intent to change service, December 2014
- Figure 50: ISP selection based on desired pay TV carrier, by intent to change service, December 2014
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- Figure 51: Satisfaction with current home internet service, by intent to change service, December 2014
Interest in Faster Internet
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- Key points
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- Figure 52: Satisfaction with current home internet service, by age, December 2014
- Figure 53: Interest in high-speed internet, by age, December 2014
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- Figure 54: Interest in high-speed internet, by household income, December 2014
- Figure 55: Interest in high-speed internet, by presence of children in household, December 2014
Impact of Race and Hispanic Origin
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- Key points
- Time to focus on Hispanics
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- Figure 56: Subscription to pay TV, internet, phone, and bundled services, by race/Hispanic origin, January-September 2014
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- Figure 57: Video-on-demand services, by race/Hispanic origin, January 2014-September 2014
- DVR potential opportunity among Black subscribers
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- Figure 58: Subscription to premium channels and DVR service, by race/Hispanic origin, January-September 2014
Appendix – Additional Data Tables
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- Market drivers
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- Figure 59: Use of streaming HD and graphics-heavy video gaming, by household income, December 2014
- Figure 60: Use of streaming HD and graphics-heavy video gaming, by carrier, December 2014
- Leading companies
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- Figure 61: Pay TV service provider, by presence of children in household, December 2014
- Figure 62: Home internet service provider, by age, December 2014
- Figure 63: Home internet service provider, by gender and age, December 2014
- Subscription and feature usage
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- Figure 64: Access to video-on-demand, February 2009-September 2014
- Figure 65: Subscription to premium channels, February 2009-September 2014
- Figure 66: Subscription to premium channels, by age, January 2014-September 2014
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- Figure 67: Subscription to premium channels, by household income, January-September 2014
- Figure 68: Access to pay-per-view, February 2009-September 2014
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- Figure 69: Frequency of use of pay-per-view, February 2009-September 2014
- Figure 70: Type of pay-per-view programming watched, February 2009-September 2014
- Carrier selection
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- Figure 71: Factors in carrier selection, by presence of children in household, December 2014
- Figure 72: Factors in carrier selection, by carrier, December 2014
- Figure 73: ISP selection based on desired pay TV carrier, by carrier, December 2014
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- Figure 74: ISP selection based on desired pay TV carrier, by household income, December 2014
- Figure 75: ISP selection based on desired pay TV carrier, by presence of children in household, December 2014
- Changing carriers
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- Figure 76: Attitudes and behavior related to changing pay TV service, by age, December 2014
- Figure 77: Attitudes and behavior related to changing pay TV service, by gender and age, December 2014
- Figure 78: Attitudes and behavior related to changing pay TV service, by household income, December 2014
- Internet usage
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- Figure 79: Devices used to access internet at home, by race/Hispanic origin, January-September 2014
- Figure 80: Wi-Fi usage, February 2009-September 2014
- Phone service
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- Figure 81: Spend on phone service, February 2009-September 2014
- Figure 82: Switched phone service in past twelve months, February 2009-September 2014
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