Tuesday 21st May

The Pulse

Goodbye, Old Friend

Written by
Paul Hassing

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19
Oct

View to a kill.

Speaking of redundancy, how’s the shift in television?

I can now view 16 free-to-air channels!

In response, the pay TV sector is doing odd things.

Instead of nurturing a dwindling client base, their desperate measures are breaking hearts and losing minds.

Lessons for us here, I reckon.

Drop Zone

I noticed the first pay TV tactic a couple of years ago.

Black van convoys disgorged young, uniformed zealots who huddled and high-fived before flitting across my suburb like so many incendiaries.

Soon my street resounded to thumped doors and high-energy pitches.

Just the things to make me pretend I wasn’t home.

But my dogs gave me away, and I had to endure a ten-minute scripted diatribe about why life was pointless without pay TV.

I didn’t buy it.

Golden Needles

I did, however, read the brochure thrust at me as the horde moved on.

Pay TV did have some interesting programs.

But, like Schmackos in a Kong Wobbler, they were locked in an impenetrable barrier and fed piecemeal.

It was uncanny how each good program was unique in its channel, such that five channels had to be bought to cobble one night’s entertainment.

I’ve since found I’m not alone in my thinking.

I Like Your New Stuff Better Than Your Old Stuff

Recently, I heard of a friend who’d been a pay TV customer for a decade.

When she saw an ad offering extraordinary discounts, bonuses and freebies to new customers, she rang the firm to seek same.

On being curtly informed that the largesse was for newbies only, she posited that:

Her chronic custom was much more valuable than a fresh sign-up.
Her loyalty was worth some reward.

The answer was still no.

So she cancelled her subscription altogether.

Then she told my wife.

Who told me.

Who told you.

Ad Nauseum

I’ve since asked others about their pay TV experiences.

The recurring theme is advertising.

The pleasure of watching a paid program is being eroded by a growing number of ads for that show, other shows and other channels.

The repetition is said to rival free-to-air television.

And that’s saying something.

So, it seems the last advantage of pay TV is drowning in self-promotion.

Showtime

It seems obvious to me that pay TV will go the way of brick cladding.

While I decry its survival tactics, I don’t have any better ideas.

Therefore, is this stressed sector merely doing all it can?

Or are there better, smarter ways to get back in the limelight?

You’ve tuned in.

How about turning us on?

What advice would you give this (and other) fading performers?

Paul Hassing, Founder & Senior Writer, The Feisty Empire

business lesson, client base, customer loyalty, declining sector, fading business, future proof, loyalty, new business, new clients, pay TV, redundancy, small business, television, TV

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What others are saying

Author

Adam Finlay

October 19, 2010 at 1:14 pm

I would like to comment on this post, but I’m busy watching TV.

The drug of a nation.

Or is it the rug of a Haitian?

I never could tell.

Back to the box.

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Author

Paul Hassing

October 19, 2010 at 1:19 pm

I understand, Ad.

The shrug of a Cajun?

I’ll ask that chap from Spearhead.

Many thanks for your sponsorship.

We now return you to our regular programming.

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Author

Sonia

October 19, 2010 at 1:25 pm

Paul,
I’m amazed at how much of the Pay TV content is re-runs of old shows. I’d be quite happy to just be able to select only the channel that shows all of the All Blacks rugby games (not just the ones where we beat .. umm I mean play.. Australia).

Quietly lurking around the corner is Internet TV. How about only paying for the shows that you actually want to watch, when you want to watch them .. not to mention the extra free to air shows too.

Already I’ve found the ‘net has negated my need for a ‘recorder’, as I’ve recently viewed Chan 10 shows on their website the next day (or two). Can’t quite bring myself to buy a digital recorder just yet. Not with internet TV lurking. Forget the 3D gimmick … this will be the next big thing.

-Sonia (a hopefully soon to be Panasonic Insider .. consumer panels rock!)

P.S Nothing on for the kids? My pre-prep girls are addicted to ABC2 … and I get my news fix on ABC news channel 24. Everyone’s happy .. except for hubby missing those All Blacks games.

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Author

Paul Hassing

October 19, 2010 at 1:32 pm

Wonderful to hear from you, Sonia. It’s been so quiet today, I half expected a triffid to sashay past my window.

Amen on all you say, except for the sport stuff – which is beyond my ken. And barbie.

We’ve watched some ABC docos on the PC and they’ve been fine. Our new digital recorder has made mincemeat of ads. And if you want 3D, I’d ask you to step outside! So we’re roughly on the same tram.

Good luck with the panel. I’d LOVE a report from inside the machine. With best regards and deep thanks for your beaut comment.

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Author

Sarah Mitchell

October 19, 2010 at 1:33 pm

Hi Paul,

You’ve given a wonderful example of a business who, after resting on their laurels for far too long, invests in a knee-jerk reaction when real competition shows up. The worst part of this story is the pay TV guys haven’t made any attempt to understand their own customer base. I suspect they’ll go down thrashing but they will go down. When the world started moving to digital equipment, they should have been in marketing huddles to understand what they needed to do to stay relevant. Unfortunately, it’s an old story.

Cheers,
Sarah

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Author

Paul Hassing

October 19, 2010 at 1:36 pm

Thanks for the endorsement, Sarah. What I’d give to have some pay TV folk join us in debate! I appreciate your comment.

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Author

Sarah Mitchell

October 19, 2010 at 1:39 pm

Hi Paul,

If any of your readers know people in the marketing division of these pay TV companies I wish they would get them to weigh in. You’ve done a wonderful job painting the issue from the eyes of the consumer. I think they need to hear it.

I’m amazed at how you consistently come up with the goods!

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Author

Paul Hassing

October 19, 2010 at 1:41 pm

You’re very kind, Sarah.

It’s quite easy to ask questions … when you know as little as I do!

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Author

Paul Hassing

October 19, 2010 at 1:44 pm

Tweeted:

Calling Pay TV Executives. Our polite debate craves your input to ensure balance: http://myob.com.au/blog/goodbye-old-friend/

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Author

Susan Oakes

October 19, 2010 at 1:46 pm

Hi Paul,

Foxtel is moving a little although of course you need to pay extra. They just announced TV and Movie on demand which you need an internet connection to watch them. The only problem is that they have taken away some services from some packages but you still get to pay the same. You can also download movies and some programs now onto your PC.

That said it is nice to watch movies on py TV without ads.

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Author

Paul Hassing

October 19, 2010 at 1:52 pm

That’s a very handy update, Susan; all news to me. Thanks very much!

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Author

Kelly Wright

October 19, 2010 at 1:56 pm

(followed the discussion here through Sarah’s twitter feed)

The “discounts for new users only” story blows my mind. It’s something I’ve seen time and time again from organisations – or departments – who have SALES targets and nothing else. For them, getting new customers is the driver and current customers departing doesn’t even register.

A recent example for me was trying to update my membership in the NRMA. I wasn’t a potential new customer, so I wasn’t important.

When will these organisations learn?

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Author

Paul Hassing

October 19, 2010 at 2:04 pm

Nice to see you, Kelly. That (beautifully written) post of yours has stunned me right back.

As it happens, I know a rather large wheel at NRMA. I’ll alert them to this stinging lesson.

Thank you for sharing your story with us. I really appreciate it.

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Author

Julian Smith

October 19, 2010 at 3:37 pm

Paul – you must be a mind reader. My partner had a very challenging experience with our pay TV provider yesterday. We’ve been customers for well over 10 years, yet they don’t seem to see just how valuable we are!

It’s a tricky one to balance “client acqusition” sales promotions with how you “reward” loyal customers. Does anyone have any examples of a company that does “both” well?

Julian (@JulianTSmith)

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Author

Paul Hassing

October 19, 2010 at 4:44 pm

Hi Julian. I’m glad our topic is resonating, but sorry it’s resonating with your partner! It’s good to get a few more data on the board to ensure we’re not anomalous.

I’m all tapped out of good examples, but I’m sure our audience will have ideas. Best regards, P.

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Author

Maralyn Kastel

October 19, 2010 at 10:16 pm

I don’t have Pay TV. I don’t have a flat screen, plasma, LED, LCD, HD digital converter or whatever. My son thinks I’m a dinosaur, but I think there are better things to do, like read and write on blogs….At least, one can find stimulating discussion and fine writing.

I can’t remember the last time that I even began to think about recording a TV show. However, I love watching sport, most sports, big events like the Commonwealth Games, Olympics, tennis, NRL etc etc. but even watching big events tests my patience with the ads. I usually end up finding something to do in the ads because ADS as such, insult me, talk down to me, annoy the living daylights out of me and generally make me mad.

If I do want to watch a series and assuming it gets rave reviews from friends with similar tastes, I wait for it to come out in the “boxed special” and then write a quick note to santa!

Oh, the “honeymoon rates/special deals” for new customers promulgated and perfected in the 1990′s by the big banks and taken on board by every “tom, dick and harry” big business that had no concept of taking care of their existing customers, and driven solely by sales targets.

Now, according to most banks’ latest philosophy, they’ve seen the error of their ways and are now trying like mad to regain lost ground. Methinks it is after the horse has bolted.

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Author

Paul Hassing

October 20, 2010 at 8:34 am

Sorry I missed your comment last night, Maralyn. How nice to get your comprehensive take on this topic.

Much of what you say strikes a chord in me. I wonder if writers, as a rule, prefer reading to watching.

I’m very glad you mentioned banking. I have a good news post coming up soon that may surprise some readers.

Thank you for visiting!

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Author

Paul Hassing

October 21, 2010 at 7:41 am

Seth Godin’s views on telly:

http://sethgodin.typepad.com/seths_blog/2010/10/deliberately-uninformed-relentlessly-so.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+typepad%2Fsethsmainblog+%28Seth%27s+Blog%29

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Author

Carbonite Australia

October 24, 2010 at 6:45 am

I have paytv purely for the international language channel (Greek in my case), its the only reason I purchased the subscription and its the only channels I have access to. The reason I subscribed was to ensure my children were exposed to the Greek language, because otherwise the TV would only every spit out English.

The challenge for those who like other codes of football, is that PayTV will hold the rights to so many of these games that you will be forced to buy it so you can see a game (atleast live).

For the money they charge, it can’t be worth it, particularly if you aren’t at home all day. I have friends who pay $80+ per month for it.

Does it have a life? for sport it does and other live events. For movies it suffers what the cinemas and DVD rental services suffer – free downloading off the web.

With fetchTV coming via iiNet shortly (maybe already here), I wonder if they will change the landscape at all. http://www.fetchtv.com.au/

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Author

Paul Hassing

October 24, 2010 at 10:56 am

Thank you, Arthur. As an unsportsmanlike monolinguist, I hadn’t thought of either of those aspects.

Lucky for us you keep taking the time to craft such detailed responses to every topic we put up. Thank you once again!

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Author

Stephen Hamilton

November 10, 2010 at 12:11 pm

Paul, we’ve had a similar discussion before how big companies don’t treat their loyal customers well, but reward the Johnny-come-lately crowd with all the best products and prices.

I just don’t get it.

I certainly wouldn’t put up with it either.

But, to be honest, Pay TV can afford to ignore me, as I’m not, or ever will be, a customer of theirs.

TV sucks.

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Author

Paul Hassing

November 10, 2010 at 12:12 pm

You got THAT right, Squadron Leader. Give me a Nancy Drew* novel ANY time!

* not really.

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Author

Stephen Hamilton

November 10, 2010 at 12:13 pm

Hahahaha.

Seriously, I much preferred The Three Investigators!

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Author

Paul Hassing

November 10, 2010 at 12:15 pm

I’m sure they do too!

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