Here’s a wake-up call: A new study shows that 56 percent of U.S. households now have televisions that are connected to the Internet, and about 30 percent of adults now use them to stream Internet video on a regular basis.
As we mentioned in a recent blog post on Apple TV, the recent surge of TV Everywhere usage, which involves the use of streaming Web-based multimedia, is both a blessing and a curse for network operators. While it’s great to see so many IP-enabled televisions making their way into consumers’ living spaces, the fact remains that Web streaming is cutting into pay TV revenues. Besides the fact that consumers are purchasing less video content, users who want to stream Web-based material to mobile devices are adding to network congestion, which in turn affects all users negatively.
As a result, growing operating expenses are pressuring operators to charge for Internet based on usage, and are some operators are beginning to bill consumers for the amount of content they are utilizing on a monthly basis. This is the only way to ensure that customers using more data pay their share of the expenses, while those who use less do not get punished for the actions of others in the form of higher costs.
Ultimately, the onus is on you as a broadband service provider to finds ways to monetize your services and to ensure that revenues keep up with expenses. Continue to ignore TV Everywhere, and you will continue to lose revenue. Adopt a flexible billing policy, and you will be able to stay afloat in this new connectivity-driven cable television market.