Thursday, November 13, 2008

Cable Price Wars?

Is price the primary motivator for consumers to switch their cable provider? According to the survey mentioned, the answer is a resounding yes. Still it is interesting to find that cable operators in competitive markets have shown some sub growth. And while the low hanging fruit, consumers buying only one service from cable may switch to telco, the multiple service customer is growing. The triple play packaging strategy has proven very successful at retaining consumers. "It looks like that for all the technical innovation, the promise of the triple-play bundle isn’t about service, but about the bargain. " How elastic that price point is to the decision to switch needs to be analyzed.

But price is a factor and in a recessionary economy, will become more important in the consumer purchasing decision. But it is more than price for the consumer. Some channels, like NY1 and Newschannel 12 in New York, are exclusive to cable; its importance to the consumers' viewing experience will affect the choice they make. Latency, interactive features, and customer service should not be ignored. Some people will switch because of price; for many others, these other factors matter, too.

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