Price Is Telco TV's Wedge

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Undercutting cable and satellite pricing is the key to telco TV's success, according to a new digital=TV study from Lyra Research, while channel choice does not appear to be a big value-added.

The survey of 1,000 people between December 2004 and January 2005 found that 54% of the respondents identified "lower monthly cost" as the key motivating factor if they were to switch to telco-delivered TV.

A la carte channel offerings, which have been a big issue on Capitol Hill, appear less of a concern to the consumer. That was the number two motivating factor but only for 17% of the survey.

Single bill for the so-called triple-play of TV, phone and internet was the tipping point for 14% of the survey, though with the growth of VIOP (voice over internet), cable will have an answer to the one-stop bill as well.

Perhaps as a reflection of channel fatigue with the hundreds already available over cable and satellite, new program services was the driver for only 4% of the survey.

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