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Linear services key to TV Everywhere revenues

There is legitimate revenue potential in the TV Everywhere services that operators are rapidly rolling out across the US, despite the belief of many that they will serve only as a churn reduction tool, according to research firm The Diffusion Group (TDG).

While acknowledging that operators have a “lot of issues to balance”, TDG’s director of research Michael Greeson asserts that it is specifically linear TV services (i.e. broadcast TV) that are most likely to persuade consumers to pay a few extra dollars a month.

A recent study co-authored by TDG and iStreamPlanet found that over half (61%) of pay-TV subscribers are to varying degrees likely to pay an extra US$ 5 per month for a linear TV Everywhere service, while half are likely to pay US$ 8 or more per month.

“Operators and networks just need a low-risk opportunity to introduce fees for TV, and the addition of live linear ‘broadband broadcast’ may present precisely this opening,” suggests Greeson. “They could offer free on-demand TVE, but charge US$ 5 extra per month for live linear access. Seems reasonable to me and to many consumers.”

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