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Cutting the Cord - Moving from Voice to Video


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An analyst briefing presentation delivered by Stratecast/Frost & Sullivan global director of consumer communications Mike Jude.

An analyst briefing presentation delivered by Stratecast/Frost & Sullivan global director of consumer communications Mike Jude.

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  • Transcript

    • 1. Cutting the Cord Moving from Voice to Video Mike Jude, Program Manager Consumer Communication Services January 26, 2011 Frost & Sullivan’s Growth Consulting can assist with your growth strategies
    • 2. Today’s Presenter Mike Jude, Ph.D. , Program Manager Stratecast, a division of Frost & Sullivan
      • Functional Expertise:
      • 30 years of experience in telecommunications and IT which includes technology application, market research, consulting, and operations management. Particular expertise in:
      • Decision Analytics
      • Market and Business Analysis
      • Developing Innovation and Encouraging Creativity
      • Industry Expertise:
      • Experience base covering broad range of sectors, leveraging long-standing working relationships with leading industry participants’ Senior Executives in:
      • Local Exchange Telephone Service Providers
      • Broadband and Wireless Telecommunications Providers
      • Network Automation Technology
      • Service Automation
    • 3. Poll Question
      • Which of the following cord cutting challenges concern you most?
      • Revenue replacement
      • Generation of new innovative service ideas
      • Implementation of growth strategies
      • A Growth Team focused on long term growth strategies
      • A disciplined growth pipeline system with clear stages of generate, evaluate and implement
      • *Turn off your pop-up blocker, so you can respond to the next polling question
    • 4. Focus Points
      • Frost & Sullivan Consumer Preferences Survey
      • Cord Cutting Continues in the Voice Space
      • Cord Cutting extending into Video?
      • Where are they going?
      • OTT Options
      • Ramifications for Service Providers
      • Frost & Sullivan Perspective
    • 5. Consumer Survey
      • Survey conducted in November to gauge subscriber perceptions in the U.S. consumer communication services market
      • Sample of 2012 residential consumers, yielding a 99% confidence level at a +/- 3% confidence interval: very accurate
      • Results supplement and help explain the results from the quarterly Stratecast North American Telecommunications Trackers
    • 6. Cord Cutting in the Voice Domain Continues
      • 5% continuing decline year over year.
      • Nearly 30% of those interviewed indicate they would drop their landline if they had the option to do so.
      • Mostly people find a landline redundant
      • Yet, nearly 26% of those who drop their landline re-subscribe.
      • A big reason they come back is for the security of the landline connection .
    • 7. The Cord Cutting Dynamic Source: Stratecast CCS 4-37; North American Voice Tracker 2010 Q3
    • 8. Drop phone for wireless? Source: Stratecast
    • 9. Why did you drop? Source: Stratecast
    • 10. Did you re-subscribe? Source: Stratecast
    • 11. Why did you re-subscribe? Source: Stratecast
    • 12. Why do you keep your landline? Source: Stratecast
    • 13. Where do the landline subscribers go? Source: Stratecast
    • 14. But Now Cord Cutting Seems to be Coming to Cable TV
      • In 2010, we saw the first decline in cable TV subscriptions.
      • Decline of 3.2% year over year in third quarter.
      • Yet, at the same time, broadband subscriptions continue to increase.
      • 2010 was the year of third party set top boxes
    • 15. Cable Subscriptions Decline Source: Stratecast
    • 16. Why do subscription video consumers migrate? Most important consideration Source: Stratecast
    • 17. Where are they going? Source: Stratecast
    • 18. Third Party Set Top Boxes Proliferate Roku Box Boxee Apple TV Google TV Graphics from: Apple, Google, Roku, Boxee
    • 19. OTT Projections Source: Stratecast
    • 20. Implications for Service Providers
      • As broadband continues to penetrate the residential market over the top services will proliferate.
      • Cord cutting in both the voice and subscription video domains is inevitable.
      • OTT set top boxes are a gateway to a complete quad play experience; one that will be increasingly attractive to consumers and competitive with network operators.
      • As Frost & Sullivan telemetry indicates, the attraction for consumers to retain landline services is the service bundle and security.
      • Excellent customer service is critical.
    • 21. Frost & Sullivan Perspectives
      • Carriers who wish to stop the erosion of their landline voice subscribers need to emphasize the attributes that consumers value beginning with security.
      • Subscription TV services should focus on new premium content since archival content is increasingly the domain of the OTT provider.
      • To the extent that conventional subscription TV can provide a “TV anywhere” capability, and more importantly brand that experience, it will help staunch the hemorrhaging.
      • Focusing on ease of use can also slow cord cutting: it is the single most important reason cited by cord cutters for doing so.
    • 22. Next Steps
      • Request a strategic approach document for a Growth Partnership Service or Growth Consulting Services to support you and your team to accelerate the growth of your company. ( [email_address] ) 1-877-GoFrost (1-877-463-7678)
      • Join us at our annual Growth, Innovation, and Leadership 2011: A Frost & Sullivan Global Congress on Corporate Growth, September 11-14 2011, Fairmont San Jose, San Jose, CA ( )
      • Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities ( )
    • 23. Your Feedback is Important to Us
      • Growth Forecasts?
      • Competitive Structure?
      • Emerging Trends?
      • Strategic Recommendations?
      • Other?
      Please inform us by taking our survey. What would you like to see from Frost & Sullivan? Frost & Sullivan’s Growth Consulting can assist with your growth strategies
    • 24. Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter
    • 25. For Additional Information Jake Wengroff Global Director, Social Media Strategy and Research Information & Communication Technologies (210) 247-3806 [email_address] Mike Jude, Ph.D. Program Manager: Consumer Communications Services Stratecast | Frost & Sullivan ( 303) 466-2377 Angie Montoya Global Analyst Briefing Coordinator Marketing (210) 247-2435 [email_address] Craig Hays Sales Manager Information & Communication Technologies (210) 247-2460 [email_address]