Report: Music could save ISPs ‘hundreds of millions’ in churn costs
There’s a theory that ISPs launching their own music services could be quids in when it comes to reducing the number of customers that ‘churn’ to rival providers. But how much?
Billboard has been crunching the numbers, based on US ISP Comcast, and claims that if the ISP launched its own music service and reduced churn by 10%, over five years the positive impact would be $162 million. Reduce it by 20%, and it’d be $325 million.
“These numbers show that broadband providers have reason to place a large value on a music service that is properly integrated into its product offering,” claims Billboard’s Glenn Peoples. “For this reason, record labels have ample reason to pursue deals with broadband providers.”
Tags: Comcast
February 4th, 2010 at 6:15 pm
What exactly is “churn”?
February 5th, 2010 at 10:36 pm
[...] Report: Music could save ISPs ‘hundreds of millions’ in churn costs [...]
February 10th, 2010 at 12:30 pm
In Australia it has been ruled that ISPs are not going to be responsible for file-sharing that is done on their service. Despite the fact that European countries are moving towards legislation that suggests they should be.