GHoosdum
1 Dec 2005, 2:10pm
A recent statement by Chuck Porter, an advertising industry executive, shows that consumers shy away from choking up the cash when it comes to paying for advertisement-free content, a finding which defies prior market research data.
Porter noted that when it came time to sign up for such services, many of the consumers being studied changed their minds.
"Every focus group we have had, people said, 'We don't want commercials on the radio; We will pay to not have commercials," he said at the Summit held in New York. "But they wouldn't, and they didn't."
Quality programming, on the other hand, is a more attractive incentive, Porter added.
"People are not buying HBO because it doesn't have ads, they are buying it because they want to watch the Sopranos," he said, referring to the popular organized crime-family drama on the Time Warner Inc. TV network. "It's about content."
A disconnect between what people say they'd do and what they actually do? What a shock!
Source: Reuters (http://today.reuters.com/news/newsarticle.aspx?type=technologyNews&storyid=2005-11-30T232812Z_01_SPI083193_RTRUKOC_0_US-MEDIA-SUMMIT-COMMERCIALFREE.xml)
Porter noted that when it came time to sign up for such services, many of the consumers being studied changed their minds.
"Every focus group we have had, people said, 'We don't want commercials on the radio; We will pay to not have commercials," he said at the Summit held in New York. "But they wouldn't, and they didn't."
Quality programming, on the other hand, is a more attractive incentive, Porter added.
"People are not buying HBO because it doesn't have ads, they are buying it because they want to watch the Sopranos," he said, referring to the popular organized crime-family drama on the Time Warner Inc. TV network. "It's about content."
A disconnect between what people say they'd do and what they actually do? What a shock!
Source: Reuters (http://today.reuters.com/news/newsarticle.aspx?type=technologyNews&storyid=2005-11-30T232812Z_01_SPI083193_RTRUKOC_0_US-MEDIA-SUMMIT-COMMERCIALFREE.xml)