Irdeto Report Sees Rising Demand for À La Carte Pricing

CHICAGO: Consumers want a world of "hyper-personalized" à la carte pay-TV entertainment, according to new research from Irdeto, moving away from bundles that contain channels they're not interested in.

The research indicates that many consumers would consider changing their primary TV service to one that offers à la carte packaging, led by the U.S. (58 percent). Similarly high levels were reported in Irdeto's studies in Singapore (54 percent), Australia (46 percent) and the U.K. (42 percent). The main factor for making the move is cost. Unwillingness to pay for channels they don't use was listed as a key factor in the markets surveyed: 77 percent in the U.K., 75 percent in the U.S., 68 percent in Singapore and 63 percent in Australia. Consumers in the U.S. and Australia were also interested in having greater control over the channels they pay for.

"While it’s clear that many may not realize that the cost of creating an à la carte experience could actually be equal to—or greater than—current pay-TV bundles, it is expected that the desire for hyper-personalization and choice will still fuel the à la carte trend worldwide," Irdeto says.

The research also noted that some consumers—36 percent in the U.K. and 28 percent in Australia—favor the bundled model for the choice it offers. Consumers in the U.K. and Australia were less likely to consider switching, largely because of their satisfaction with free-TV content.

"This research shows an increasing demand from consumers for content on their terms," said Richard Scott, the senior VP of sales and marketing at Irdeto. "Operators must take this into consideration and ensure that they continue to evolve their offerings accordingly to remain competitive in the market. The drive towards à la carte can be seen across the industry, with new services looking to cater to that consumer. In addition to offering a compelling multiscreen experience, operators must also price themselves correctly to avoid losing consumers who realize that à la carte services can become quite expensive when added together.”