Microsoft: Users Will Pay Through the Teeth for Internet TV

According to Microsoft, users will have no problems coughing up the cash to get Internet television. The Redmond Company has concluded that customers value features, content and streamlined usage over price, and as such, put at rest one of the myths associated with the pay TV market.

Microsoft revealed that it has conducted a global study together with Screen Digest and that consumers have opted for TV services at current and higher market prices just to get access to content and features, in a proportion of over 60%. The study involved participants from no less than 7 countries around the world.

"This finding contradicts previously held assumptions that price is the single most important factor in selecting TV service providers. The study further points to key trends that define the Internet Protocol Television (IPTV) market and demonstrates that as technology changes the nature of television, old paradigms of behavior may not necessarily apply," informed Microsoft.

Of course that behind the study is Microsoft's need to identify market segments that would be ideal customers for IPTV and the incentives necessary to drive them to adopt such costly services. As a result of the study, Microsoft has stated that there is a potential pool of 230 million customers across Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.

"Old assumptions about this new TV market will need to be turned upside down to effectively build the customer base," said Christine Heckart, general manager, marketing, Microsoft TV Division. "Our research clearly demonstrates that the purchase paradigm is changing. Price and channel lineup have long been the primary criteria for consumers selecting TV services. Our research suggests that consumers are willing to pay for a richer TV experience that is personal, easy to use, connected and social - and that consumers are willing to pay for."