The internet is to blame: “This is a generation of consumers raised in the internet era, where content is perceived as being free”.
So says a survey conducted for KPMG by market research company Taylor Nelson Sofres. KMPG concludes that attempting to exploit converged services purely to squeeze more cash out of consumers will not work on a traditional subscription model.
Instead operators should think of converged services as a churn reduction tool, “to deepen their customer relationships in ways that allow other parties to reach them”.
The report authors point to the Google model, “providing a [free] service offering so compelling that it attracts hundreds of thousands of eyeballs which – in turn – are attractive to third party advertisers”.