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Pay-TV Market Study Reveals Segmentation Upside

When you think of the  broadcast video entertainment arena, it seems to have been centered upon the notion that there’s a huge undifferentiated mass-market of consumers who — by and large — all want the same thing.

Incumbent pay-TV service offerings have tended to follow this belief, by delivering a small set of standardized service packages. And for the longest time there’s been no compelling need for traditional service providers to more closely scrutinize the market segmentation variables.

Now though, we’re clearly seeing a shift in the marketplace, that reflects an acknowledgement of the growing market fragmentation. In an on-demand, personalized world  some service providers are already voicing their intent to offer more flexibility in their pay-TV service options and associated pricing.

Granted, a small subset of U.S. pay-TV subscribers have, for a number of different reasons, decided not to wait for their incumbent service provider to introduce more granular or flexible service packages. These people are among the early-adopter cord-cutters that have been equally vocal about their preference for alternative value-based offerings.

We’ve been intrigued by these recent developments, and so we commissioned a market study to learn more about the potential for increased diversity of U.S. pay-TV customer needs and wants. The following are some highlights of what we were able to uncover. Read More »

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