Thursday, January 23, 2014

Is There Any Growth Ahead for Pay-TV Subscribers?

Research from Parks Associates suggests pay-TV in the U.S. for 2014 will grow slightly, ending the year at about 103.1 million households buying services, up from the 102.5 million subscribing to pay-TV in 2013.

If subscribers are to grow on a sustained level from the plateauing the industry has experienced over the last several years, companies will have to offer features most don't provide at this time, according to Parks.

For example, DISH Network is one of the few companies offering remote access to DVR content. The reason it isn't offered by others is because of restrictions associated with licensing deals.

John Barrett, the director of consumer analytics at Parks Associates, said this: "Remote access to DVR content was the most popular among pay-TV households without that service. Our research shows 31% of pay-TV subscribers want remote DVR access, while 27% are interested in TV Everywhere and 26% in personalized recommendations."

The future of pay-TV
With DISH Network providing remote access to DVR content, it's worth looking at this part of the company to see if it does make a difference in adding new subscribers.

In its latest quarterly report, DISH added 35,000 new net subscribers for its pay-TV service, pointing to some growth possibilities in that regard. However, those possibilities are so few and far between that it makes one wonder if demands of consumers are able to be monetized.

For the year, DISH was able to add 54,000 new subscribers as of the third quarter.

Parks Associates concluded companies offering services desired by consumers aren't marketing them as effectively as they could. There is also the concern over any additional costs that may be associated with new services. Many complaints have been made by pay-TV subscribers over the rising costs of services.

From the article, "Is There Any Growth Ahead for Pay-TV Subscribers?" by Gary Bourgeault.

Next: Dish Network Continues to Make Money Despite Customer and Employee Hatred
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