TORONTO – When the potential economics of a pick-and-pay TV world is laid out for them, the interest expressed by Canadian consumers to choose TV channels a-la-carte falls off dramatically, according to research released today by CTAM Canada.
A volunteer-based organization, CTAM (Cable & Telecommunications Association for Marketing) is an industry association that provides information, education and networking opportunities for cable companies, content providers, and others who supply products and services to the cable industry. The organization released the new data as part of its annual research report, just in time for the start of the CRTC’s TV Policy Review hearing beginning Monday.
Surveying over 3,000 Canadians, CTAM Canada found while there is significant initial interest in the “pick & pay” concept (of course!), appeal substantially decreases as Canadians are more informed about the details of what may be the real “pick & pay” offering. According to the CTAM release:
- 57% of Canadians are aware of “pick & pay”, and 7 in 10 of those who are aware understand that the concept means “to choose only the channel(s) you want”, resulting in a very positive initial impressions of the concept.
- However, once Canadians take into account the fact that the price of more popular channels will be re-scaled (cost per channel increases compared to bundle pricing), the appeal of “pick & pay” falls dramatically with only 10% (versus 43%) saying it is a very good idea.
- Further, while the idea of packaging Canadian channels with U.S. channels in order to satisfy Canadian content quotas under an a-la-carte model has appeal to some Canadians, this aspect significantly lowers the overall appeal of the pure “pick and pay” concept with 18% saying it is a very good idea – down from 43% who thought pick and pay was a good idea without the Canadian content restrictions.
Results also show that while the Canadian TV landscape is evolving to offer more options to access content, says the research, total consumption of video content has increased (28.6 hours/week in 2014 vs. 27.4 in 2013). As well, over half (52%) of Canadians who currently subscribe to paid TV are satisfied with their subscription.
- Satisfaction with current TV service subscription is highest among the Traditional Couch Potatoes (63%) and In-Home Entertainment Couples (54%) segments, says the research.
- Interestingly, 18-24 year olds who currently have a paid TV subscription also show a good level of satisfaction (54%), as well as the highest intent to increase the number of channels in their subscription package (7%).
- Not surprisingly, the segment with highest likelihood to trim or cut their current TV service subscription is the time starved “Busy Professionals”, who have one of the lowest incidences of viewing video content (22.3 hours per week vs. the Canadian average of 28.6).
- Among those planning to trim their subscription TV service, cost (54%) and not watching content (53%) were the most commonly mentioned reasons by a large margin. Those were also the top two reasons for those considering cutting paid TV service altogether but 18% in that group also said they are using other services as a reason.
Charlton Strategic Research conducted an online survey of over 3,000 Canadians, on behalf of CTAM Canada earlier this year. Additional research reports looking at Netflix/Over The Top (OTT) and TV Everywhere use will be released in the coming months
“The 2014 CTAM Canada study is representative of consumers [except Nunavut and NWT] in the Canadian TV marketplace and very is comprehensive” said Gord Hendren, president, Charlton Strategic Research in the release. “It provides key insights about the opinions of Canadians concerning their TV choices and their behavior in an evolving marketplace,” he added.
“As the industry organization representing Canadian cable distributors and program suppliers, one of the most important services we provide is a comprehensive, annual research report on media consumption by Canadians,” added Gary Pelletier, president of CTAM Canada. “This piece on the concept of pick and pay is very relevant and timely. The results show that there is still much consumer education required to clearly explain the realities and economics of pick and pay television packages.”
