The Digital Consumer: Global Views on the Pay TV Experience, Cable Analytics and Cable Wi-Fi INTX 2015
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1 The Digital Consumer: Global Views on the Pay TV Experience, Cable Analytics and Cable Wi-Fi INTX 2015
2 Global online survey of 4,070 pay TV customers in 11 markets The Survey Independent research that explores consumer perceptions towards pay TV providers (including cable and satellite operators) compared to over-the-top (OTT) providers. The research also captured consumer attitudes on Wi-Fi services and willingness to share usage and experience data in exchange for more personalized offerings. The research was conducted on behalf of Amdocs by leading research firm IE Market Research Corp. Australia Brazil Canada France Germany Malaysia Mexico Russia Singapore United Kingdom United States 4,070 RESPONDENTS 52.4% RESPONSE RATE ±1.54% 19 TIMES OUT OF 20 Source: Linx-IE Market Research Corporation 2
3 Executive summary 1. Pay TV operators have a clear advantage over OTT providers in areas of content, customer service and video quality 2. Consumers are ok with analytics when the information is used to provide more personalized services In order to build on their strength in customer service and offer more personalized service, pay TV operators will need to invest in areas such as actionable analytics to deliver more proactive and personalized services 3. Consumers see value in carrier-grade Wi-Fi out of the home i.e. provides a good connection speed, a seamless connection across Wi-Fi access points, automatic hand-off to mobile (cellular) networks if required, automatic (seamless) login In order to provide carrier-grade Wi-Fi out of the home operators need to invest in areas such as: Wi-Fi Quality of Experience (QoE) Wi-Fi Monetization Wi-Fi Policy
4 Pay TV Customer Experience and Cable Analytics (Big Data) Key Take-a-Ways 4
5 Where pay TV providers are strong in customer experience Pay TV operators lead in areas of content, customer service and video quality Content Video Quality Service 88% 12% 81% 19% 93% 7% N = 670 (US and Canada respondents) Question: Between pay TV providers and over-the-top (OTT) online video services (such as Netflix, Hulu, etc.), who do you feel provides better service in the following areas? Source: Linx-IE Market Research Corporation 5
6 Where OTT providers are strong in customer experience Price Availability of content on multiple devices Recommendations of relevant content User interface 16% 84% 21% 79% 23% 77% 22% 78% N = 670 (US and Canada respondents) Question: Between pay TV providers and over-the-top (OTT) online video services (such as Netflix, Hulu, etc.), who do you feel provides better service in the following areas? Source: Linx-IE Market Research Corporation 6
7 A single source to watch all content could stem cord-cutting and cord-shaving 24% of respondents in the US and Canada (pay TV subscribers that also subscribe to an OTT service) are considering cancelling or reducing the amount they spend on their pay TV service. 51% of these consumers would maintain their spend if their pay TV provider gave them a single source to search, discover, and watch all of their content, including OTT content. N = 337 Question: Are you considering cancelling/reducing the amount you spend with your pay TV service provider (click any that apply)? Question: If your pay TV company provided you with a single source to easily search, discover and watch all of your content, including OTT online video and Internet content, would you maintain your level of service with your pay TV provider? Source: Linx-IE Market Research Corporation 7
8 US and Canada respondents are willing to pay an average of 7.0% more to receive services tailored to their viewing preferences + 6.0% + 8.0% US monthly spend Canadian monthly spend N = 563 Question: How much more would you be willing to pay for a service which is more tailored to your viewing preferences? Percentage values calculated as percentage of cable video ARPU in the United States and Canada. Source: Linx-IE Market Research Corporation 8
9 86.3% of respondents (US and Canada) are OK if their usage information is collected and analyzed to get more personalized service Reasons cited: Personalized customer service: Tips on using existing services: Providing new personalized services: Improving the quality of experience: 26.2% 20.8% 19.9% 19.5% No/never: 13.7% N = 740 Question: How would you expect your service provider to use the information they have about you (i.e., your usage patterns, the services you have subscribed to, service issues/interruptions you have had, etc.)? Source: Linx-IE Market Research Corporation 9
10 Cable Wi-Fi Key Take-a-Ways 10
11 Consumers in the US and Canada attach a value of 9.5% more per month above their cable broadband ARPU for carrier-grade Wi-Fi access outside the home $44.93 $49.20 N = 552. Question: How much would you pay per month for Wi-Fi access outside your home that offers a good connection speed (e.g. can stream HD video), a seamless connection across various Wi-Fi access points, automatic handoff to cellular networks (if required), and automatic login? Percentage values calculated as percentage of cable broadband ARPU in the United States (SNL Kagan) and Canada (Ovum) Source: Linx-IEMR, SNL Kagan, Ovum 11 11
12 77.2% of consumers in the US and Canada would consider replacing their mobile plan with a Wi-Fi First plan under different scenarios Reasons cited to consider replacing mobile plan with Wi-Fi First plan: Same access and coverage as mobile: 25.5% Better speed and quality than mobile: Better price than mobile data: If Wi-Fi was bundled with my other services: If data is more important than voice: 13.2% 10.6% 11.6% 16.2% No / Never: 20.5% N = 697 Question: Under which of the following circumstances would you consider replacing your mobile/cellular plan with a Wi-Fi First plan? Source: Linx-IE Market Research Corporation 12 12
13 Thank you! Uri Gurevitz, Director Amdocs Market Insight & Strategy About Amdocs Amdocs is the leading provider of customer experience solutions. We work with more than 250 service providers in more than 80 countries. For more information please visit amdocs.com Amdocs is focused on helping pay TV operators as they deliver more proactive and personalized service and as they rollout and monetize carrier-grade Wi-Fi. For more information please visit amdocs.com/solutions/cable-satellite/pages/cable-satellite.aspx
14 The Digital Consumer: Global Views on the Pay TV Experience, Cable Analytics and Cable Wi-Fi INTX 2015
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Coming out of LET S TALK TV, it s expected that Pick-and-Pay distribution models will become more available across the country. As package choice increases, and more over-the top services enter the market,
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