Intx, Chicago – According to new global research from Irdeto, many consumers would consider changing their primary TV service to an a la carte model to avoid paying for bundles which include channels they don’t watch. The research reinforces a growing consumer trend and reveals that 42% of UK consumers, 46% in Australia, 54% in Singapore and 58% in the U.S. would be interested in changing their current TV service to a package where they could select the specific channels and content that they wanted to watch.
Cost is clearly the main global driver of this willingness to change, with respondents who would consider this kind of package in the UK (77%) and the U.S. (75%) mainly motivated by not wanting to pay for bundled channels they don’t watch (compared to 68% in Singapore and 63% in Australia). Greater control over the channels that they pay for is also important to respondents in the U.S. (62%) and Australia (62%), whereas U.S. consumers are also more likely (53%) to believe this model would be cheaper than consumers elsewhere. While it’s clear that many may not realise that the cost of creating an a la carte experience could actually be equal to – or greater than – current pay TV bundles, it is expected that the desire for hyper-personalisation and choice will still fuel the a la carte trend worldwide.
There are a number of consumers, however, who wouldn’t consider shifting to an a la carte TV service model. This is largely because they like the variety of content offered in more traditional packages – particularly in the UK (36%) and Australia (28%). In all countries surveyed, the most popular reason for not wanting to switch is that consumers like having lots of channels to choose from. Consumers in the UK and Australia were less likely to consider switching, which could be because they are happy with the free TV offering they have under the license fee – 38% of UK consumers and 51% of Australian consumers mainly watch free TV content.
“This research shows an increasing demand from consumers for content on their terms. Operators must take this into consideration and ensure that they continue to evolve their offerings accordingly to remain competitive in the market,” said Richard Scott, Senior Vice President, Sales and Marketing, Irdeto. “The drive towards a la carte can be seen across the industry, with new services looking to cater to that consumer. In addition to offering a compelling multi-screen experience, operators must also price themselves correctly to avoid losing consumers who realise that a la carte services can become quite expensive when added together.”
The research was commissioned by Irdeto and conducted online by YouGov among representative samples in each market, with over 5,000 adults in total taking part, to understand and address consumer attitudes towards viewing and paying for a la carte TV content. It uncovers trends in viewing desires and habits in the U.S, UK, Australia and Singapore.
Additional trends uncovered by the research are: