TV Companies Hold Clear Edge in Race to Win Acceptance of Bundled Services

TV Companies Hold Clear Edge in Race to Win Acceptance of Bundled Services

67% Open to Abandoning Phone Company for TV Provider; Bundled TV Services Draw Greater Interest Than Telecom

MENLO PARK, Calif., March 8 /PRNewswire/ -- A Knowledge Networks study, Consumer TV Choice, shows that television service providers hold a distinct advantage over telephone companies in achieving customer acceptance of a single, "bundled" source of communications and entertainment services. In addition, packages of TV-related services held more appeal for consumers than similar bundles that included telephone connections.

The report -- produced as part of The Home Technology Monitor(TM), the authoritative source of insights on consumers and media technologies -- also shows that two-thirds (67%) of respondents would be "very likely" or "somewhat likely" to switch from their existing telephone carrier to their TV provider, assuming the service met their needs.

Over half (51%) of consumers believe a satellite or cable provider will offer superior service and value for a TV/telecom bundle, as compared to 21% for local phone companies, 19% for Internet service providers, and 8% for a local utility.

"It appears that TV-centric companies have a greater likelihood of winning over consumers to their bundled offerings," said David Tice, Vice President, Client Service, at Knowledge Networks and director of The Home Technology Monitor(TM). "And, while voice over Internet (VOIP) may be getting more publicity, it is the TV-related technologies -- like DVRs and VOD -- that consumers are most interested in buying as part of bundled packages."

Other highlights of the report include:

-- One quarter of respondents find a digital video recorder (DVR), interactive programming guide (IPG) or video on demand service (VOD) "extremely appealing" (percentages were 26%, 27%, and 25%, respectively);

-- The typical TV household is spending an average of $45 monthly on TV services, but would be willing to spend up to $52 to obtain additional services;

-- Overall, a telecommunications bundle containing on-demand TV components and broadband Internet showed greatest potential appeal to consumers in the survey.

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Source: Knowledge Networks

CONTACT: David Stanton, Director of Marketing Communications of Knowledge Networks, +1-908-497-8040, or dstanton@knowledgenetworks.com

Web site: http://www.knowledgenetworks.com/

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