Parks Associates recently presented consumer data showing traditional promotions, such as offering free or discounted premium channels, are the most-effective tool for pay-TV providers in luring back lost subscribers.
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The findings came from research and analysis of consumers who recently re-subscribed to pay-TV service after cutting the cord and those who have canceled their subscription to Netflix Watch Instantly. Parks Associates' consumer research finds 44% of customers who re-subscribed to pay-TV services in the past 18 months said a promotion was a significant reason for their return.
"Most people leave pay-TV services due to economic factors, and these are the main influencers bringing them back," said John Barrett, director, research, Parks Associates. "They are not dissatisfied with Internet video. In fact, many cited Netflix Watch Instantly as a very satisfying experience. These re-subscribers were simply ready to take advantage of a promotion as their own financial situation improved."
Promotions and/or discounts were the leading factors for re-subscribers with Comcast, Time Warner, DirecTV, and Dish Network. For AT&T and Verizon, re-subscribers cited content-related reasons at a higher rate, slightly ahead of promotions.
"Content availability is an important consideration for TV viewers, and these promotions seem to be the final push many consumers need to jump back into the pay-TV fold," Barrett said. "At the same time, economic factors work against Internet video services. Consumers who cancelled their Netflix account cited a need to save money or were responding to the company's price increases."
Additional Resources
• Read more industry trade news from Home Theater Review.
• See reviews in our HDTV Review section.
• Explore more reviews in our Satellite and Cable Receivers Review section.
