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.

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  • Cutting the Cord - Moving from Voice to Video

    1. 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. 2. Today’s Presenter Mike Jude, Ph.D. , Program Manager Stratecast, a division of Frost & Sullivan <ul><li>Functional Expertise: </li></ul><ul><li>30 years of experience in telecommunications and IT which includes technology application, market research, consulting, and operations management. Particular expertise in: </li></ul><ul><li>Decision Analytics </li></ul><ul><li>Market and Business Analysis </li></ul><ul><li>Developing Innovation and Encouraging Creativity </li></ul><ul><li>Industry Expertise: </li></ul><ul><li>Experience base covering broad range of sectors, leveraging long-standing working relationships with leading industry participants’ Senior Executives in: </li></ul><ul><li>Local Exchange Telephone Service Providers </li></ul><ul><li>Broadband and Wireless Telecommunications Providers </li></ul><ul><li>Network Automation Technology </li></ul><ul><li>Service Automation </li></ul>
    3. 3. Poll Question <ul><li>Which of the following cord cutting challenges concern you most? </li></ul><ul><li>Revenue replacement </li></ul><ul><li>Generation of new innovative service ideas </li></ul><ul><li>Implementation of growth strategies </li></ul><ul><li>A Growth Team focused on long term growth strategies </li></ul><ul><li>A disciplined growth pipeline system with clear stages of generate, evaluate and implement </li></ul><ul><li>*Turn off your pop-up blocker, so you can respond to the next polling question </li></ul>
    4. 4. Focus Points <ul><li>Frost & Sullivan Consumer Preferences Survey </li></ul><ul><li>Cord Cutting Continues in the Voice Space </li></ul><ul><li>Cord Cutting extending into Video? </li></ul><ul><li>Where are they going? </li></ul><ul><li>OTT Options </li></ul><ul><li>Ramifications for Service Providers </li></ul><ul><li>Frost & Sullivan Perspective </li></ul>
    5. 5. Consumer Survey <ul><li>Survey conducted in November to gauge subscriber perceptions in the U.S. consumer communication services market </li></ul><ul><li>Sample of 2012 residential consumers, yielding a 99% confidence level at a +/- 3% confidence interval: very accurate </li></ul><ul><li>Results supplement and help explain the results from the quarterly Stratecast North American Telecommunications Trackers </li></ul>
    6. 6. Cord Cutting in the Voice Domain Continues <ul><li>5% continuing decline year over year. </li></ul><ul><li>Nearly 30% of those interviewed indicate they would drop their landline if they had the option to do so. </li></ul><ul><li>Mostly people find a landline redundant </li></ul><ul><li>Yet, nearly 26% of those who drop their landline re-subscribe. </li></ul><ul><li>A big reason they come back is for the security of the landline connection . </li></ul>
    7. 7. The Cord Cutting Dynamic Source: Stratecast CCS 4-37; North American Voice Tracker 2010 Q3
    8. 8. Drop phone for wireless? Source: Stratecast
    9. 9. Why did you drop? Source: Stratecast
    10. 10. Did you re-subscribe? Source: Stratecast
    11. 11. Why did you re-subscribe? Source: Stratecast
    12. 12. Why do you keep your landline? Source: Stratecast
    13. 13. Where do the landline subscribers go? Source: Stratecast
    14. 14. But Now Cord Cutting Seems to be Coming to Cable TV <ul><li>In 2010, we saw the first decline in cable TV subscriptions. </li></ul><ul><li>Decline of 3.2% year over year in third quarter. </li></ul><ul><li>Yet, at the same time, broadband subscriptions continue to increase. </li></ul><ul><li>2010 was the year of third party set top boxes </li></ul>
    15. 15. Cable Subscriptions Decline Source: Stratecast
    16. 16. Why do subscription video consumers migrate? Most important consideration Source: Stratecast
    17. 17. Where are they going? Source: Stratecast
    18. 18. Third Party Set Top Boxes Proliferate Roku Box Boxee Apple TV Google TV Graphics from: Apple, Google, Roku, Boxee
    19. 19. OTT Projections Source: Stratecast
    20. 20. Implications for Service Providers <ul><li>As broadband continues to penetrate the residential market over the top services will proliferate. </li></ul><ul><li>Cord cutting in both the voice and subscription video domains is inevitable. </li></ul><ul><li>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. </li></ul><ul><li>As Frost & Sullivan telemetry indicates, the attraction for consumers to retain landline services is the service bundle and security. </li></ul><ul><li>Excellent customer service is critical. </li></ul>
    21. 21. Frost & Sullivan Perspectives <ul><li>Carriers who wish to stop the erosion of their landline voice subscribers need to emphasize the attributes that consumers value beginning with security. </li></ul><ul><li>Subscription TV services should focus on new premium content since archival content is increasingly the domain of the OTT provider. </li></ul><ul><li>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. </li></ul><ul><li>Focusing on ease of use can also slow cord cutting: it is the single most important reason cited by cord cutters for doing so. </li></ul>
    22. 22. Next Steps <ul><li>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) </li></ul><ul><li>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 ( ) </li></ul><ul><li>Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities ( ) </li></ul>
    23. 23. Your Feedback is Important to Us <ul><li>Growth Forecasts? </li></ul><ul><li>Competitive Structure? </li></ul><ul><li>Emerging Trends? </li></ul><ul><li>Strategic Recommendations? </li></ul><ul><li>Other? </li></ul>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. 24. Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter
    25. 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]