Table of Contents
Executive Summary
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- The market
- Bundled communications market valued at £20.2 billion
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- Figure 1: Operator revenue from communication services, 2014-24
- Consumers increasingly reliant on data
- Importance of landline decreases
- 5G gaining momentum but cost and coverage are barriers
- Companies and brands
- BT retains grip of broadband market
- Virgin Media brings 1GBps internet speeds to consumers
- BT starts Halo plan with a focus on customer service
- Virgin Media adds Amazon Prime Video to TV platform
- The consumer
- Consumers continue to be less dependent on landlines
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- Figure 2: Ownership of a landline service, November 2017-December 2019
- Over six in 10 broadband subscribers have fibre speeds
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- Figure 3: Type of broadband owned, November 2017-December 2019
- Netflix and Amazon Prime Video subscriptions rise
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- Figure 4: Netflix/Amazon Prime video subscriptions, January 2019-December 2019
- Almost 40% of TV subscribers use providers’ apps
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- Figure 5: Usage of a TV provider’s mobile app, December 2019
- Virgin Media customers most likely to have quadplay
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- Figure 6: Buying a quadplay bundle previously or in the future, December 2019
- Customer service experience the key differentiator after price and product quality
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- Figure 7: Most important factors when considering a bundle provider, December 2019
- Data allowance key in using 5G to replace home broadband
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- Figure 8: Interest in using 5G as a replacement for home broadband, December 2019
- What we think
Issues and Insights
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- Offering mid-contract incentives to engage and keep quadplay customers
- The facts
- The implications
- Unlimited streaming as part of 5G is likely to promote pay-TV providers’ apps
- The facts
- The implications
The Market – What You Need to Know
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- Bundled communications market valued at £20.2 billion
- Consumers increasingly reliant on data
- Importance of landline decreases
- 5G gaining momentum but cost and coverage are barriers
Market Size and Forecast
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- Bundled communications market valued at £20.2 billion
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- Figure 9: Operator revenue from communication services, 2014-24
- Figure 10: Operator revenue from communications services, 2014-24
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- Figure 11: Fixed telecoms and TV subscription revenues, 2014-19
Market Drivers
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- Consumers increasingly reliant on data
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- Figure 12: Number of fixed broadband connections, 2013-18
- Figure 13: Average speed of home broadband, 2013-18
- Figure 14: Average home broadband data consumption per month, 2013-18
- Importance of landline decreases
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- Figure 15: Minutes using landline service per year, 2013-18
- 5G gaining momentum but cost and coverage are barriers
- Fixed Mobile Convergence gaining prominence
- Bundle providers agree to compensation scheme to improve customer service
- Bundled communications providers respond to coronavirus
- BT insists that broadband performance will maintain
- Virgin Media checks client-facing staff for flu symptoms
- Sky offers new movies at same time as cinemas
- Impact on consumers
Companies and Brands – What You Need to Know
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- BT retains grip of broadband market
- Virgin Media brings 1GBps internet speeds to consumers
- BT starts Halo plan with a focus on customer service
- BT also partners with Google to offer exclusive Stadia gaming package
- Virgin Media adds Amazon Prime Video to TV platform
Market Share
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- BT retains grip of broadband market
- Marginal drop across TV platforms
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- Figure 16: Fixed Broadband market share, 2013-18
- Figure 17: UK household TV platforms Q4 2019
Launch Activity and Innovation
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- Virgin Media brings 1GBps internet speeds to consumers
- Sky offers new Ultrafast broadband
- BT starts Halo plan with a focus on customer service
- Virgin Media adds Amazon Prime Video to TV platform
- BT also partners with Google to offer exclusive Stadia gaming package
Brand Research
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- Brand map
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- Figure 18: Attitudes towards and usage of selected brands, January 2020
- Key brand metrics
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- Figure 19: Key metrics for selected brands, January 2020
- Brand attitudes: Sky and Virgin Media viewed as most innovative bundle providers
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- Figure 20: Attitudes, by brand, January 2020
- Brand personality: Sky and BT are the most accessible providers
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- Figure 21: Brand personality – macro image, January 2020
- TalkTalk seen as least expensive but lacking in product quality
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- Figure 22: Brand personality – micro image, January 2020
- Brand analysis
- Consumers rank Sky as the best provider
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- Figure 23: User profile of Sky, January 2020
- Internet-driven younger consumers most likely to use Virgin Media
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- Figure 24: User profile of Virgin Media, January 2020
- BT favoured by older consumers
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- Figure 25: User profile of BT, January 2020
- TalkTalk is the least favoured but also seen as least expensive
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- Figure 26: User profile of TalkTalk, January 2020
The Consumer – What You Need to Know
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- Consumers continue to be less dependent on landlines
- Nearly all of landline owners bundle with broadband
- Over six in 10 broadband subscribers have fibre speeds
- Netflix and Amazon Prime Video subscriptions rise
- Growth potential for Ultra HD with a third of BT, Sky and Virgin Media subscribers watching
- Almost 40% of TV subscribers use providers’ apps
- Virgin Media customers most likely to have quadplay
- Customer service experience the key differentiator after price and product quality
- Data allowance key in using 5G to replace home broadband
Use of Bundled Providers
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- Sky edges ahead of bundle competitors
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- Figure 27: Market share for bundled communications providers, November 2017-December 2019
Communication Bundles in the Home
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- Consumers continue to be less dependent on landlines
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- Figure 28: Ownership of a landline service, November 2017-December 2019
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- Figure 29: Frequency of usage for landline, December 2019
- Nearly all of landline owners bundle with broadband
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- Figure 30: Bundles including a landline service, December 2019
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- Figure 31: Cost of broadband and landline compared to broadband-only, December 2019
- TV and internet continues as most popular non-landline bundle
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- Figure 32: Bundles excluding a landline service, January 2019-December 2019
Broadband Speeds
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- Over six in 10 broadband subscribers have fibre
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- Figure 33: Type of broadband owned, November 2017-December 2019
Subscriptions to Streaming Services
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- Netflix and Amazon Prime Video subscriptions rise
- Premier League coverage spearheads Amazon’s live TV push
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- Figure 34: Netflix/Amazon Prime Video subscriptions, January 2019-December 2019
- Figure 35: Netflix/Amazon Prime Video subscriptions, by generation, December 2019
- Consumers prefer to pay for streaming services separately
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- Figure 36: Paying for streaming service as part of or separate from bundled TV subscription, December 2019
Watching and Streaming Content from TV Subscription
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- Growth potential for Ultra HD with a third of BT, Sky and Virgin Media subscribers watching
- Higher resolution display is the biggest motivator to buy a new TV
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- Figure 37: Behaviours around watching live or on-demand TV content, December 2019
- Almost 40% of TV subscribers use providers’ apps
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- Figure 38: Usage of a TV provider’s mobile app, December 2019
Quadplay Bundles
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- Virgin Media customers most likely to have quadplay
- Fixed mobile convergence to improve quadplay bundles
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- Figure 39: Subscriptions to a quadplay bundle, December 2019
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- Figure 40: Simplicity of quadplay bundles and intent to switch provider, December 2019
- Four in 10 consumers without quadplay would be open to signing up
- Mid-contract incentives could convince consumers to sign up and stay with quadplay
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- Figure 41: Buying a quadplay bundle previously or in the future, December 2019
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- Figure 42: Consideration for subscribing to quadplay in the future, December 2019
- Figure 43: Reasons against subscribing to quadplay, December 2019
Motivational Factors to Switch Bundle Provider
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- Customer service experience the key differentiator after price and product quality
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- Figure 44: Most important factors when considering a bundle provider, December 2019
- Figure 45: Most important factors when considering a bundle provider, by generation, December 2019
5G as a Home Broadband Replacement
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- Data allowance key in using 5G to replace home broadband
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- Figure 46: Interest in using 5G as a replacement for home broadband, December 2019
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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