OnDemand WTP Pricing Research

Consumers and pay-TV industry are far apart on a la carte channel pricing | LA Times

The TiVo wish list suggests that more than a few people would be just as happy, if not happier, without any sports programming. It also indicates that the average $7.20 a month that ESPN adds to people’s pay-TV bills is wasted money for many households.

As for pricing, here’s where things get really interesting.

We already have a strong sense of the industry’s preferred prices thanks to Canada requiring that its pay-TV services offer subscribers a la carte channels. Many channels north of the border cost about $2.25 a month, but the more desirable channels, such as AMC and CNN, can surpass $5 apiece.

Premium movie channels, as U.S. cord cutters already know, are even pricier. HBO will set you back $15 a month. Most of the other premiums run about $10 each.

TiVo’s respondents made clear that Canada’s a la carte prices are significantly higher than what U.S. customers think they should pay.

For example, the average monthly price people said they’d pony up for ABC, the single most popular channel, was just $1.25 monthly.

That’s roughly the same amount offered for most of the top 20, with PBS coming in a smidge higher ($1.52), followed by History and Food Network ($1.49 each).

The preferred price for ESPN? That would be $1.82. HBO? A mere $2.81.

Overall, TiVo’s respondents saw fair value in paying an average $28.87 a month for their 20 favorite channels. The average cable bill now tops $100 a month.

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Consumers and pay-TV industry are far apart on a la carte channel pricing – LA Times.