Perceived value of pay-TV on the wane

The value that consumers attribute to traditional pay-TV services like cable, satellite and IPTV appears to be steadily declining due to continued economic uncertainties and the availability of online alternatives like Netflix, according to The Diffusion Group.

In 2013, just under half (49%) of US pay-TV subscribers rated their service as good value, compared to 55% of subscribers in 2012 – a significant decline of 10%, says the research firm.

More importantly, the percent of pay-TV subscribers that rate the value of their service as “extremely good” declined from 31% to 25%, down 18% year-over-year.

“With prices for traditional pay-TV services on the rise, it makes sense that consumers would second guess the value of these subscriptions,” said Michael Greeson, Founding Partner of TDG. “Though value has remained high for decades, in the last year perceptions seems to be waning.

“Without doubt this is due to continued economic uncertainty, but our research continues to show that the availability of alternative video sources is weighing more heavily on consumer perceptions than many believe.”

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