Thursday, April 18, 2013

Promos Lure People Back to Pay-TV

An interesting new study conducted by Parks Associates finds that the latest wave of discounts and promotions being offered are successfully luring consumers back to pay-TV services after having cut the cord.

The study finds that 44% of customers who re-subscribed to pay-TV services in the past 18 months said a promotion was a significant reason for their return.

"Most people leave pay-TV services due to economic factors, and these are the main influencers bringing them back," says John Barrett, Director, Research, Parks Associates. "They are not dissatisfied with Internet video. In fact, many cited Netflix Watch Instantly as a very satisfying experience. These re-subscribers were simply ready to take advantage of a promotion as their own financial situation improved."

Note, however, that this study is U.S.-based, and finds that the promotions offered by providers like Comcast, Time Warner, DirecTV, and Dish Network were the incentives that brought customers back. For AT&T and Verizon, re-subscribers cited content-related reasons at a higher rate, slightly ahead of promotions.

"Content availability is an important consideration for TV viewers, and these promotions seem to be the final push many consumers need to jump back into the pay-TV fold," adds Barrett. "At the same time, economic factors work against Internet video services. Consumers who cancelled their Netflix account cited a need to save money or were responding to the company's price increases."

From the article, "Promos Lure People Back to Pay-TV" by Christine Persaud.

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