Pulling a Hulu
A new study from The Diffusion Group (TDG) , suggests that 60 percent of adult broadband users (95 million consumers) are enthusiastic about TV Everywhere services, and about 34 percent (54 million) are willing to pay at least $5 extra per month for that multi-screen access. TDG says about one third would pay an extra $10, and roughly one fifth would pay more than $15 per month.
TV Everywhere services are being billed as free value-adds, but TDG founding partner and report author Michael Greeson thinks that will change as such services become popular with more consumers and operators have more reason to tap a new revenue stream.
Incumbent video service providers will grow more likely to "pull a Hulu," he says, noting how the Web video hub started off with a free, ad-supported service, and has since moved ahead on plans to launch a subscription-based "Hulu Plus" premium tier. (See Hulu Opens Toll Road and Hulu Unveils Subscription Service.)
Greeson notes that operators have solid rationale to start TV Everywhere as a free service, because it can help reduce churn, but they'll have to adjust that strategy if increasing demand indicates that they are "leaving tens of millions of dollars on the table."
— Jeff Baumgartner, Site Editor, Light Reading Cable