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 (Reuters) - A vast majority of Americans would prefer to
assemble their own pay TV channels rather than subscribe to
packages that include dozens or hundreds of networks, a new
Reuters/Ipsos poll found in a challenge to traditional
television distribution.
Seventy-seven percent of U.S. adults said they would like "a la
carte pricing" which would allow consumers to pick their own
channels. Only 23 percent said they would prefer bundles. (For a
graphic see http://reut.rs/1H4mLdK).
Media companies and distributors that provide satellite,
broadband and cable services are struggling to find ways to keep
viewers from ditching traditional subscriptions and attract a
younger generation, which sees less need for a cable
subscription and watches on computers and mobile devices.
"I pay for a lot of channels that are not of interest to me,"
said poll respondent Charles Bourque, 63, who lives in
Manchester, New Hampshire.
He does not want the Russian and Spanish networks that he gets
as a Comcast subscriber, paying north of $200 a month. He does
not speak either language.
Verizon tested the waters for a product offering more
customization last month when it rolled out a Custom TV plan
with 36 fixed channels and the choice of adding small bundles
related to sports, children or news. That was seen as a step
toward a la carte.
Twenty-First Century Fox and Comcast's NBC Universal both said
the offer violates the terms of their contracts that allow
Verizon to carry their programming.
Walt Disney's ESPN took the same stance and launched a lawsuit
against Verizon, claiming the distributor breached the terms of
their deal.
A Verizon spokeswoman declined to share details on subscriber
numbers and the type of users signing up for FiOS Custom TV,
which is aimed at millennials and cord cutters. She said that
the Reuters/Ipsos poll results validated the rationale for
launching Custom TV.
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ESPN did not immediately respond to a request for comment.
The survey found few willing to pay more than about $10 per channel.
The poll found 40 percent would pay up to $10 a month for sports
network ESPN, while 46 percent are willing to do the same with news
networks such as CNN, MSNBC or Fox News.
The percentage of people who will pay up to $30 a month for either
ESPN or news networks was 4 percent and 6 percent, respectively.
A 54 percent majority do not want ESPN, while 47 percent said they
do not want cable news networks.
Adam Smith, a 27-year-old who lives in Ludington, Michigan, said he
would prefer to choose channels and pay $70 a month or less per
month. He pays over $100 a month for his Dish Network subscription.
The online poll was conducted by Ipsos on behalf of Reuters from May
1 through May 6 with a sample of 1,680 Americans age 18 or older.
The Reuters/Ipsos poll's accuracy is gauged using a statistical
measure called a credibility interval. In this case, the poll
results are accurate within plus or minus 2.7 percentage points.
(Additional reporting by Malathi Nayak; Editing by Peter Henderson
and Bernard Orr)
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