Table of Contents
Issues in the Market
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- Main issues
- Definition
- Abbreviations
Future Opportunities
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- More than just another pipe
- Value beyond price
- It’s about what we want, not how we get it
- Choosing à la carte
Market in Brief
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- A market built on price
- Resistance to recession
- Restricted consumer engagement with products
- Price buys market share, but service boosts subscriber value
- Attracting the better off: A question of content?
- Internet takes centre stage
- Lack of baggage makes Virgin leader in triple-play
- Retail therapists help consumers and suppliers alike
- Technology the future game changer
Internal Market Environment
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- Key points
- Internet penetration: Speed is of the essence
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- Figure 1: UK internet penetration, 2003-09
- Mobile computing to bind bundles together?
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- Figure 2: UK computer sales, 2004-10
- Multichannel TV creates multiple opportunities
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- Figure 3: UK multichannel TV households, 2003-09
- Convergence can create demand for a new type of bundling
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- Figure 4: UK multichannel TV penetration, by platform, 2003-09
- TV viewing habits
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- Figure 5: UK volume retail sales of TV sets, by screen type and size, 2007-09
- Legislation and regulation: Ofcom seeks to increase competition
- Fibre network unbundling
- Mobile termination charge reductions
- Sky Sports wholesale prices
- Technological change
- Super-fast broadband: Faster and broader access
- Falling technology prices = falling bundle prices?
- Consumers to question duplicate functionality
- Content remains king
Broader Market Environment
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- Key points
- Recession steers consumers towards bundled services...
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- Figure 6: GDP, PDI, consumer expenditure and savings, at constant 2005 prices, 2005-15
- ...but confidence remains fragile
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- Figure 7: GfK NOP Consumer Confidence Index, 1988-2010
- Investment needed in elderly care
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- Figure 8: UK population structure, by age and gender, 2005-15
- Upwardly mobile move market towards a value view
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- Figure 9: Forecast adult population trends, by socio-economic group, 2005-15
- Home alone to downsize their bundles?
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- Figure 10: UK households, by size, 2005-15
Competitive Context
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- Key points
- Competition in volume: More bundle providers
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- Figure 11: UK bundled home communications services providers, by type of bundle, April 2010
- Competing on value: More options for consumers
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- Figure 12: UK home communications services bundle pricing, April 2010
- Can mobile move indoors?
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- Figure 13: Active UK mobile phone subscriptions, by quarter, 2004-09
- The main challenges
- Fight looms over Freeview
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- Figure 14: UK free-to-air TV households, 2003-09
- Broadband: The new single-play?
Strengths and Weaknesses in the Market
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- Strengths
- Recession resistance
- Mainstream status
- Technological change
- Enabling legislation
- Choice
- Weaknesses
- Consumer confusion
- The utilities factor
- Price focus
- Limited promotion
- Demographic change
Who’s Innovating?
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- Key points
- TV looks to make the broadband connection
- Showcasing services switches focus from price to value
- An online race for bundle buyers
- Quad-play attracts a crowd
- It’s good to talk
Market Size and Forecast
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- Key points
- New entrants, new subscribers keep growing market value
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- Figure 15: Consumer expenditure on bundled home communications services, triple-play only, 2005-15
- Bundle buyers to become the majority
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- Figure 16: Penetration of bundled home communications services, 2007-09
- Consumers most willing to pay for TV
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- Figure 17: Consumer expenditure on home communications services, by service (including unbundled), 2005-09
- Trading up a major market force
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- Figure 18: Take-up of bundled home communications services, by number of services, 2005-09
Companies and Products
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- Key points
- Two-lane traffic divided by TV
- British Sky Broadcasting Group
- Services offered
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- Figure 19: BSkyB bundle offerings, April 2010
- Financials
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- Figure 20: Key financials for British Sky Broadcasting Group plc (interim), 2008 and 2009
- Figure 21: Key financials for British Sky Broadcasting Group plc, 2008 and 2009
- Figure 22: Subscriber statistics, British Sky Broadcasting Group plc, 2008 and 2009
- British Telecommunications Plc
- Services offered
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- Figure 23: BT bundle offerings
- Financials
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- Figure 24: Key financials for BT Retail (interim), 2008 and 2009
- Figure 25: Key financials for BT Retail, 2008 and 2009
- Figure 26: Subscriber statistics, BT Retail, 2008 and 2009
- TalkTalk
- Services offered
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- Figure 27: TalkTalk bundle offerings
- Financials
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- Figure 28: Key financials for TalkTalk (interim), 2008 and 2009
- Figure 29: Key financials for TalkTalk, 2008 and 2009
- Figure 30: Subscriber statistics for TalkTalk, 2008 and 2009
- Virgin Media
- Services offered
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- Figure 31: Virgin Media bundle offerings
- Financials
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- Figure 32: Key financials for Virgin Media Inc, consumer segment, 2008 and 2009
- Figure 33: Virgin Media subscriber statistics, 2008 and 2009
- Others
- O2
- Orange
- Tesco
- Vodafone
Brand Elements
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- Key points
- Brand map
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- Figure 34: Attitudes towards and usage of bundled communication service brands, January 2010
- Brand qualities of bundled communication service brands
- Sky for simplicity, Virgin for vibrancy
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- Figure 35: Personalities of various bundled communication service brands, January 2010
- Experience of bundled communication service brands
- BT most used, but rivals stealing share
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- Figure 36: Consumer usage of various bundled communication service brands, January 2010
- Brand consideration for bundled communication service brands
- Sky and Virgin tussle at the top
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- Figure 37: Consideration of various bundled communication service brands, January 2010
- Brand satisfaction for bundled communication service brands
- Virgin nudges ahead, Tiscali disappointed
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- Figure 38: Satisfaction with various bundled communication service brands, January 2010
- Brand commitment to bundled communication service brands
- Virgin best for bundles?
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- Figure 39: Commitment to various bundled communication service brands, January 2010
- Brand intentions for bundled communication service brands
- TalkTalk to the rescue for Tiscali customers?
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- Figure 40: Future usage intentions for various bundled communication service brands, January 2010
- Brand recommendation for bundled communication service brands
- Virgin most recommended, Tiscali unlikely to be missed
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- Figure 41: Recommendation of various bundled communication service brands, January 2010
- Sky
- What the consumer thinks
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- Figure 42: Attitudes towards the Sky brand, January 2010
- TalkTalk/Tiscali
- What the consumer thinks
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- Figure 43: Attitudes towards the TalkTalk brand, January 2010
- Figure 44: Attitudes towards the Tiscali brand, January 2010
- Virgin Media
- What the consumer thinks
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- Figure 45: Attitudes towards the Virgin Media brand, January 2010
- BT
- What the consumer thinks
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- Figure 46: Attitudes towards the BT brand, January 2010
Brand Communication and Promotion
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- Key points
- Promoting consumer confidence
- Services still sold on quality, not quantity
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- Figure 47: Expenditure on bundled communications services advertising, by provider, 2006-09
Whose Bundles Do We Buy?
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- Key points
- Providers still seen as individual service specialists
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- Figure 48: Usage of service providers for phone, internet and/or multichannel TV services, April 2010
- Only cable connects on a cross-service level
- Consumers stick to what their providers know
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- Figure 49: Penetration of bundled services, by brand, April 2010
- Focus on value misses the more affluent
- Dual-play market tightly defined
- More room for rivals in triple-play
- Reaching the potentials
What Guides Our Bundle-buying Choices?
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- Key points
- Just another utilities bill
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- Figure 50: Reasons for choosing a particular service provider for multiple services, April 2010
- More than one type of convenience buy
- Content and features appeal more to men
- Super-fast broadband gives Virgin a USP
Which Bundle Elements Do We Value Most?
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- Key points
- We want to stay connected – web-connected
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- Figure 51: Top priorities for bundled communications packages, April 2010
Attitudes Towards Bundled Communications Services
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- Key points
- Convenience becoming more important than cost
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- Figure 52: Attitudes towards bundled home communications services, April 2010
- A barrier to churn
- Generation why? The young question buying on price alone
- Low costs no cure for technophobia
- Viewing for value, surfing for freedom
Bundled Communications Target Groups
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- Key points
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- Figure 53: Bundled home communications services target groups, April 2010
- The Unbundled
- What do they think and do?
- Who are they?
- Marketing message
- Switchers
- What do they think and do?
- Who are they?
- Marketing message
- Nervous Novices
- What do they think and do?
- Who are they?
- Marketing message
- Televisionists
- What do they think and do?
- Who are they?
- Marketing message
Appendix – Broader Market Environment
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- Figure 54: Forecast adult population trends, by lifestage, 2005-15
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Appendix – Brand Communication and Promotion
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- Figure 55: Expenditure on bundled communications services advertising, by type of bundle, 2006-09
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Appendix – Whose Bundles Do We Buy?
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- Figure 56: Penetration of bundled services, by brand, by demographics, April 2010
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Appendix – What Guides Our Bundle-Buying Choices?
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- Figure 57: Most popular reasons for choosing a particular service provider for multiple services, by demographics, April 2010
- Figure 58: Next most popular reasons for choosing a particular service provider for multiple services, by demographics, April 2010
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- Figure 59: Most popular reasons for choosing a particular service provider for multiple services, by penetration of bundled services, by brand, April 2010
- Figure 60: Next most popular reasons for choosing a particular service provider for multiple services, by penetration of bundled services, by brand, April 2010
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- Figure 61: Reasons for choosing a particular service provider for multiple services, by most popular reasons for choosing a particular service provider for multiple services, April 2010
- Figure 62: Reasons for choosing a particular service provider for multiple services, by next most popular reasons for choosing a particular service provider for multiple services, April 2010
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Appendix – Which Bundle Elements Do We Value Most?
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- Figure 63: Top priorities for bundled communications packages, by demographics, April 2010
- Figure 64: Top priorities for bundled communications packages, by penetration of bundled services, by brand, April 2010
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- Figure 65: Top priorities for bundled communications packages, by reasons for choosing a particular service provider for multiple services, April 2010
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Appendix – Attitudes Towards Bundled Communications Services
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- Figure 66: Most popular attitudes towards bundled services, by demographics, April 2010
- Figure 67: Next most popular attitudes towards bundled services, by demographics, April 2010
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- Figure 68: Other attitudes towards bundled services, by demographics, April 2010
- Figure 69: Most popular attitudes towards bundled services, by penetration of bundled services, by brand, April 2010
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- Figure 70: Next most popular ttitudes towards bundled services, by penetration of bundled services, by brand, April 2010
- Figure 71: Reasons for choosing a particular service provider for multiple services, by most popular attitudes towards bundled services, April 2010
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- Figure 72: Reasons for choosing a particular service provider for multiple services, by next most popular attitudes towards bundled services, April 2010
- Figure 73: Top priorities for bundled communications packages, by attitudes towards bundled services, April 2010
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- Figure 74: Attitudes towards bundled services, by most popular attitudes towards bundled services, April 2010
- Figure 75: Attitudes towards bundled services, by next most popular attitudes towards bundled services, April 2010
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- Figure 76: Attitudes towards bundled services, by other attitudes towards bundled services, April 2010
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Appendix – Bundled Communications Target Groups
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- Figure 77: Target groups, by demographics, April 2010
- Figure 78: Penetration of bundled services, by brand, by target groups, April 2010
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- Figure 79: Reasons for choosing a particular service provider for multiple services, by target groups, April 2010
- Figure 80: Top priorities for bundled communications packages – rank 1, by target groups, April 2010
- Figure 81: Attitudes towards bundled services, by target groups, April 2010
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