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TV and the Internet: Toward a More Perfect Union 

Grassroots Research 

 

4/3/2017 

As television and the internet become more integrated, satellite and cable providers are presenting a plethora of new subscriber packages. Grassroots℠ Research shows that consumers are captivated, with many inclined to negotiate new package agreements.
Interviews with 1,000 cable or satellite subscribers in the US revealed that 89% subscribed both to television (cable/satellite) and internet service in the past six months, while 11% subscribed to television only. Furthermore, 24% currently subscribe to Comcast, followed by DIRECTV at 17%, Time Warner at 10%, AT&T U-Verse at 9% and Verizon FIOS at 8%. Also, 40% of our sources spend $100–$149 per month on cable/satellite and internet service, while 33% spend more, and 28% spend less.

Meanwhile, 47% of sources contacted their cable/satellite provider in the past 24 months to negotiate a new package agreement, including 32% who changed their contract terms (among these, 43% downgraded to a package with fewer channels; 34% upgraded primarily to obtain more channels; 21% upgraded primarily to get faster internet speed; and 2% downgraded to internet only). Among the 43% who downgraded to a package with fewer channels, 71% are somewhat or very satisfied, while 29% are somewhat or very unsatisfied.

Among sources who downgraded to internet only, 58% are somewhat or very satisfied, while 42% are somewhat or very unsatisfied. Among the 47% who contacted their cable/satellite provider to negotiate a new package agreement, Netflix currently is the streaming service to which they most frequently subscribe (52%), followed by Amazon Prime (39%) and Hulu (13%).

Sources who contacted their provider and remained on their current plan as well as those who upgraded to a plan with more channels or to get faster internet were asked why they did not downgrade to a less expensive plan. Forty percent like their current plan, 30% did not want to downgrade their internet speed, and 17% each did not want fewer sports channels nor fewer premium movie channels.

Television only vs. TV + Internet
% of subscribers


Source: GrassrootsSM Research



The material contains the current opinions of the author, which are subject to change without notice. Statements concerning financial market trends are based on current market conditions, which will fluctuate. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. Forecasts and estimates have certain inherent limitations, and are not intended to be relied upon as advice or interpreted as a recommendation.

GrassrootsSM Research is a division of Allianz Global Investors that commissions investigative market research for asset-management professionals. Research data used to generate GrassrootsSM Research reports are received from reporters and Field Force investigators, who work as independent, third-party contractors, as well as external research panel providers—all of whom supply research that may be paid for by commissions generated by trades executed on behalf of clients. We believe these sources of information to be reliable and are providing the information in good faith, but in no way warrant the accuracy or completeness of the information. We have no obligation to update, modify or amend this document or to otherwise notify you in the event that any matter set forth in this document changes or subsequently becomes inaccurate. In addition, information may be available that is not reflected at this time. We accept no liability whatsoever for any direct or consequential loss or damage arising from your use of the information contained in this document. We and our affiliates, officers, employees or clients may effect or have effected transactions for our or their own accounts in the securities mentioned here or in any related investments. The information provided in this document is provided for informational purposes only and shall not be considered investment advice. Any reference to a particular company shall not be considered an offer to sell, the solicitation of an offer to buy or a recommendation to buy, sell, or hold any security issued by such company. No part of this material may be i) copied, photocopied, or duplicated in any form, by any means, or ii) redistributed without prior written consent.


Allianz Global Investors Distributors LLC, 1633 Broadway, New York, NY 10019-7585, us.allianzgi.com, 1-800-926-4456.

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