(14 March 2009 8:55 pm)

MUMBAI: Just as Comcast and other pay TV operators in the US have announced plans to push high-value cable network programming to the PC, the research from TDG suggests that their intention to not charge for this content could be a major strategic error and leave hundreds of millions of dollars in additional fees on the table.

Research group TDG president Michael Greeson says, “Cable operators are working aggressively to neutralise the growing threat of online video (both PC-based and Over-the-Top) and the inevitable erosion of traditional pay TV viewership."

Greeson argues, however, that doing this for free, as an “entitlement” to existing pay TV subscribers, undervalues the very content which has for years driven subscriptions and overlooks a sizeable opportunity to grow revenue and profits at a time during which simply avoiding collapse is seen as a major accomplishment for operators.

How significant is this opportunity?

According to TDG’s report, 43 per cent of broadband consumers are interested in viewing their linear pay TV content on their PCs, two thirds of which (29 per cent) are willing to pay at least $10 per month for the service.

How much of a difference can that make in revenues and profits?

Greeson uses Comcast as an example. He says, “Comcast has close to 17 million digital TV subscribers and 15 million broadband Internet subscribers. If 29 per cent of Comcast’s broadband Internet subscribers (4.35 million) would spend an extra $10 per month to have their current TV programming delivered to their PCs, that’s an additional $43.5 million in gross revenue each month."

In times like these, Greeson notes, an extra $500 million in additional revenue can make a huge difference.