In a March 18, 2009 article, BusinessWeek's Arik Hesseldahl reports that in these economic times, cell phones are "in" and cable TV is nice-to-have, not a need-to-have. Specifically:
Consumers are cooling to cable. And they're not very satisfied with satellite TV. In fact, according to consumer research firm GfK Roper Consulting, about 40% of those surveyed during mid-2008 and early 2009 said they'd be willing to do without cable or satellite TV. Instead, they'd just as soon watch programming on free sites like Google's (GOOG) YouTube or buy videos à la carte from Netflix (NFLX). Of those surveyed, only 37% said they were getting good value for the price they pay for cable or satellite subscriptions.
Business Week: What Consumerss Cling to in Lean Times
The trend is showing up at some of the biggest cable and satellite TV providers. Subscriber totals dropped last year for Comcast (CMCSA), Dish Networks (DISH), and Cablevision Systems (CVC), while Netflix sales are growing apace, and traffic to video sites including Hulu, owned by General Electric (GE) and News Corp. (NWS), is surging.
Surprised? You shouldn't be. According to GfK Roper Consulting's consumer trends expert Jon Berry, this behavior is very consistent with what consumers have done in reccessions past.
In a March 18, 2009 article, BusinessWeek's Arik Hesseldahl reports that in these economic times, cell phones are "in" and cable TV is nice-to-have, not a need-to-have. Specifically:
Consumers are cooling to cable. And they're not very satisfied with satellite TV. In fact, according to consumer research firm GfK Roper Consulting, about 40% of those surveyed during mid-2008 and early 2009 said they'd be willing to do without cable or satellite TV. Instead, they'd just as soon watch programming on free sites like Google's (GOOG) YouTube or buy videos à la carte from Netflix (NFLX). Of those surveyed, only 37% said they were getting good value for the price they pay for cable or satellite subscriptions.
The trend is showing up at some of the biggest cable and satellite TV providers. Subscriber totals dropped last year for Comcast (CMCSA), Dish Networks (DISH), and Cablevision Systems (CVC), while Netflix sales are growing apace, and traffic to video sites including Hulu, owned by General Electric (GE) and News Corp. (NWS), is surging.
Surprised? You shouldn't be. According to GfK Roper Consulting's consumer trends expert Jon Berry, this behavior is very consistent with what consumers have done in reccessions past.
This consistency in consumer behavior during tough economic times offers marketers opportunities to win new customers as they go through those shifts in their behavior.
So what can past recessions teach us about finding opportunities in today's economic downturn?
For the full story, click on the link next to “Downloads” located at the top of this post.
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Attention Marketers: AMA TV brings you another great episode of marketing news and insights. Hear about big brands, networking and customer loyalty! This week hear how Gap is going back to basics and expanding their international presence, just in time for the holidays-networking, GfK Custom Research's 3 keys to help ensure a successful customer loyalty program and more!
AMA TV: Gap Goes Back to Basics videos.marketingpower.com Attention Marketers: AMA TV brings you another great episode of marketing news and insights. Hear about big brands, networking and customer loyalty! This week hear how Gap is going back
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