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Pricing & Packaging in Pay TV

Many new pricing and packaging models have emerged in recent years which go beyond the Basic and Premium tiers and monthly subscription charges that emerged from the US cable industry in the 1970s.

Satellite and Cable incumbents are now being challenged by new IPTV services that promise to offer more flexibility, more convenience and more choices to the consumer and so the industry needs to evolve and respond, offering more tailored services to the consumer, but retaining sufficient simplicity so that consumers are not alienated or confused by over-complex calculations and hidden clauses.

Some of these IPTV challengers such as PCCW's 'Now Broadband TV' offer 'a-la-carte' pricing models which have helped the company to challenge the dominance of Hong Kong's local cable incumbent 'i-Cable'. Other new entrants have removed long-term contractual commitments as a way of ensuring continued growth in markets where Pay TV is struggling to increase its penetration.

US Cable Operator Comcast's Triple-Play Advertising. 24 January 2008.

Bundling has also become a major trend in the sector as cable operators use bundled services to reduce churn and as satellite operators acquire or partner with telecommunications and broadband businesses around the world. In the last few years, PVRs and VOD has also emerged as technologies which many consumers segments consider when choosing a triple-play bundle or digital TV offer. As these technologies establish themselves and consumers become more aware of these products, they will start to make their own value judgements and price will become a differentiating factor in adoption, satisfaction levels and usage of VOD and other services. PayMedia and its partners track the pricing and packaging strategies of all major cable, satellite and IPTV providers world-wide, looking at how services are packaged, bundled and understanding and short-term discounts and other price promotions are applied for the main product, but also understanding the pricing of advanced products such as HD and PVR 'service' and the individual pricing of VOD content.    PayMedia and our partners also look closely at the evolution of advanced products such as PVRs, looking at features, monthly subscription charges for 'service' or 'data', and for box purchase or lease.

Australian Regional Pay TV Operator Austar Removes Contractual Lock-In Requirements (Townsville Bulletin, 26 January 2008)

IPTV operator BT Vision and their VOD Subscription Charges

BSkyB Advanced Product Purchase Costs and Discounting Options

To understand how PayMedia can help you develop your own competitive pricing strategies and respond to the changing needs of both potential and existing consumers, please contact us. Email justin@paymedia.co.uk

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