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Forbes

How India Is Ahead Of The Game In TV Unbundling

February 24, 2015

While U.S. cable television customers are longing to finally be able to pay for just the channels they actually watch, others have begrudgingly accepted that bundled television is still the way to go for getting their money’s worth. Companies like DISH, Verizon, and Sony have only announced in the last year their own plans for stand-alone streaming services. With a few clicks, $8 for Netflix NFLX -1.08%, $15 for HBO, $20 for ESPN could easily add up to a higher total than what customers currently pay for only a few channels they actually watch in a bundle. What’s more, it doesn’t look like companies will use the same set-top box, if they use set-top boxes at all (Sony and Verizon are looking to offer services completely on the cloud).

International market research firm Parks Associates estimates that the average revenue per user (ARPU) for U.S. cable customers will continue to rise at 3-5% each year due to increasing fees for content and TV services. Meanwhile, in other countries, affordable, unbundled television is nothing new. In fact, all broadcasters in India and Canada are required by law to offer channels on an a la carte basis and to specify a fixed price per channel. As the third largest TV market behind China, the lessons India has learned throughout the process can be applied abroad.

From the article "How India Is Ahead Of The Game In TV Unbundling" by Rosa Trieu.

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