A million eyes Telecom’s internet television service

A million eyes Telecom’s internet television service

Telecom might have a market of more than a million New Zealand adults interested in using its internet television service if the content and price are affordable.

An independently conducted survey by Horizon Research finds 32.2% of adults, equivalent to 1,030,780 people, say they might use Telecom’s proposed new service if the content and price are affordable.

Overall, a nett 48.7% of respondents, equivalent to 1,557,000 New Zealanders 18+, say they might use Telecom’s proposed new service. Among those who said they watched SKY in the past month, 56% - equivalent to 813,000 people 18+ - said they might use Telecom’s proposed new service.

Some 47.4% of adults (1,516,326 people) say they are not interested in the service.

The nationwide survey of 2,567 respondents aged 18+finds one of the most attractive offers Telecom might make to prospective internet television service users is to bundle it with mobile, landline and internet service to reduce a consumer’s cost overall.

Some 24.8% of respondents, the equivalent of 793,353 people 18+, say they might use the service if they were offered lower costs on bundled services.

Some 3.8% said they would like to use the service (no other conditions attached), the equivalent of 121,562 adults nationwide.

The new service, for which no prices or content have yet been announced, might also affect Sky TV content sales.

Some 2.6% of adults (83,174) said they were already using Sky’s 10-channel SKY GO mobile TV service and another 2.4% (76,776 people) wanted to.

However, 11.2% (358,288 people) said they would cancel Sky TV if Telecom’s service and content were affordable.

Some 10.2% (345,492 people) said they might reduce the numbers of services they buy from Sky TV if Telecom’s service content and price were affordable.

Overall, a nett 32% of those who watched Sky in the past month, equivalent to 462,200 people 18+, said they might cancel Sky or reduce the number of services they buy from SKY.

The survey was undertaken between February 14 and March 6, 2014, using Horizon’s national HorizonPoll panel, representing the adult population. Results are weighted. The maximum margin of error at a 95% confidence level is +/- 1.9%.

Telecom at that time was intending to call its service ShowmeTV, but has since said it will use another name because of potential clashes with other businesses using similar names.

Top line survey results are:

Putting price and content aside for a moment, overall which of these applies to you if any?
Please select all that apply
A. I already use the 10-channel SKY GO mobile TV service
2.6%
B. I would like to use the SKY GO TV mobile service
2.4%
C. I would like to use the new ShowmeTV service
3.8%
D. I might use the ShowmeTV service if the content and price are affordable
32.2%
E. I would cancel Sky TV if ShowmeTV's content and price are affordable
11.2%
F. I might reduce the number of services I buy from Sky TV if ShowmeTV's content and price are affordable
10.8%
G. I might use ShowmeTV if it meant my overall cost for mobile, landline and internet services were reduced
24.8%
H. I would like to use some other TV internet service
8.7%
I. I am not interested in this service
47.4%

Ends

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