Parks Associates: Moving Households Key to Telco Success in Video Services

Business Wire, Feb 6, 2007

DALLAS -- Telcos could make sizeable gains in the video services market if they target households that are moving or have recently moved, according to Parks Associates' latest project Households on the Move.

This survey found 45% of the estimated 23 million U.S. households that move every 18 months make their first service call to the telephone company. In addition, most people switch video providers only when they move into a new home. These combined findings uncover a scenario where the telco giants could challenge cable and satellite operators in the pay-TV market by selling these callers a bundled package that includes video as well as voice services.

"The telcos have invested heavily in upgrading their networks, and this strategy is the best shot they have to win the market," said John Barrett, director of research for Parks Associates. "Consumers don't have the time or inclination to do a painstaking cost-benefit analysis of television options, so you have to grab them during those rare times when they are consciously deciding on updated services for their new home."

Households on the Move provides an in-depth understanding of how moving impacts purchasing decisions for consumer electronics and subscriptions to communication and entertainment services. The project features data and analysis from a survey of over 3,000 U.S. households.

For more information on this report, visit http://www.parksassociates.com or contact Parks Associates at 972-490-1113 or e-mail sales@parksassociates.com. For more market research data, visit Parks Associates' Fast Facts site http://www.parksassociates.com/fastfacts.> About Parks Associates: Parks Associates is a market research and consulting firm focused on all product and service segments that are "digital" or provide connectivity within the home. The company's expertise includes home networks, digital entertainment, consumer electronics, broadband and Internet services, and home systems.

Parks Associates hosts several fall events and co-hosts CONNECTIONS[TM] and CONNECTIONS[TM] Europe (in partnership with the Consumer Electronics Association) each year. In addition, Parks Associates produces the publication Industry Insights two times per year in conjunction with the CONNECTIONS[TM] Conference series.

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