It is not yet clear whether 5G for gaming will change buyer behavior where it comes to recurring spending. Gamers surveyed recently on behalf of Ribbon Communications tend to suggest they are willing to pay more for 5G services if it improves the game play experience.
Some 58 percent of respondents say they already pay a premium to their provider to enjoy the best gaming experience possible. Fully 95 percent would pay more for improved experience, with 60 percent willing to pay 50 percent more (or $126 per month compared to the current monthly average of $84, Ribbon Communications notes.
A caveat is that consumers often say they will do things they later turn out to be unwilling to do, but sometimes also behave in ways they say they will not. Perhaps hardcore gamers are a specialized audience with very-high value placed on latency performance, for example.
But most surveys of willingness to spend more for 3G or 4G have suggested potential premiums of around $10 a month for access to the better-performing next generation network. We shall see.
The survey also had another perhaps-surprising finding. Some 79 percent reported they would consider replacing their home broadband and mobile connectivity with 5G for a better gaming experience. The caveat is that there are many choices any of us “would consider” before purchasing a new product. That is not usually the same as “likely choice.”
Consumer spending patterns for connectivity services are highly fixed, and do not change much over time. In the United Kingdom, for example, the percentage of household spending on communications has been steady since 2006.
Typically, increased spending in one area is balanced by reduced spending in another area. Most consumers in the developed world, for example, have reduced spending on fixed network services to increase use of mobility.
In developing markets mobility is a functional substitute for consumer fixed network connectivity.
Some 58 percent of respondents also reported they would switch a connectivity provider as soon as they could if a competitor offered a high-quality gaming service with a new 5G subscription.
Ultimately, it will be hard to separate potential higher spending on 5G connectivity from other drivers. Some device or service plans might include many features including 5G access--such as “unlimited data usage” that have higher price tags. But it will be difficult to untangle the value drivers.
In some cases, the desire for “unlimited data usage” on a plan that includes 5G access will drive higher average revenue per account. But “5G” might not be the actual behavior driver.
No comments:
Post a Comment