Table of Contents
Introduction
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- Definitions
- Abbreviations
Executive Summary
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- The market
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- Figure 1: Forecast value of triple play bundled communication sales, 2007-17
- Market factors
- Superfast internet connections may become more common
- Wealth of catch-up content online may harm the multichannel proposition
- Quad-play packages will likely become more popular
- Companies brands and innovation
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- Figure 2: Proportion of triple play customers taken by Sky, Virgin and BT, 2008-12
- The consumer
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- Figure 3: Bundles or services owned by consumers, from the single provider they pay most money to, November 2012
- Figure 4: Amount paid for bundled communications services to the single provider consumers pay the most money to, November 2012
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- Figure 5: Bundled package and service providers, November 2012
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- Figure 6: Other services owned by consumers, November 2012
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- Figure 7: Reasons that consumers choose their bundled communications services, November 2012
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- Figure 8: Attitudes to bundled communications, November 2012
- What we think
Issues in the Market
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- How important will mobile inclusion be in the bundles of 2013?
- Is there a way that operators can stand out in a highly similar marketplace?
- How will upcoming technologies impact on bundle provision?
- Can operators reduce customer churn?
Trend Application
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- Trend: The Suite Life
- Trend: Life Hacking
- 2015 Trend: Access Anything, Anywhere
Market Drivers
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- Key points
- Fixed line customers increasingly after bundled services
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- Figure 9: Consumers who listed ‘bundled products’ as an important factor in choosing their landline, 2009-12
- Increase in rural internet access may provoke bundle take-up
- Disruptive new TV services may harm TV bundle proposition
- IPTV so far fails to ignite interest
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- Figure 10: Pay-TV-related complaints received by Ofcom, Q4 2011-Q3 2012
- Increase in superfast connections
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- Figure 11: Take-up of superfast broadband services, Q4 2010-Q1 2012
- Mobile importance will likely lead to an increase in quad-play packages
Who’s Innovating?
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- Key points
- YouView attempts to combine Freeview with catch-up services
- BT’s new fibre-optic initiative drastically boosts speeds
- BT also focuses on sport to enhance multichannel TV offering
- Virgin Media shares landline minutes with mobiles
Market Size and Forecast
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- Key points
- The market
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- Figure 12: Value of bundled communications sales, 2007-17
- Figure 13: Volume of bundled communications sales, 2007-17
- Forecasts
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- Figure 14: Forecast value of triple play bundled communication sales, 2007-17
- Figure 15: Forecast volume of triple play bundled communication sales, 2007-17
Market Segmentation and Share
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- Key points
- Voice and broadband bundles remain the most popular
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- Figure 16: Take-up of bundled communications services, 2005-12
- Sky retains majority control of pay-TV market
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- Figure 17: Share of pay-TV subscriptions amongst BT, Virgin and Sky, 2011
- Figure 18: Volume of multichannel TV households, by provider, 2011 and 2012
- Fixed line broadband suppliers find it hard to stand out
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- Figure 19: Broadband internet providers (including traditional fixed line broadband, cable and fibre-optic-based services), by market share, December 2011
- Sky chases Virgin for triple-play customers
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- Figure 20: Proportion of triple-play customers taken by Sky, Virgin and BT, 2008-12
Companies and Products
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- BT Group plc
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- Figure 21: Financial performance of BT Group plc, 2011-12
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- Figure 22: Financial performance of BT Group plc, Q1 2012-Q2 2013
- British Sky Broadcasting Group plc
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- Figure 23: Financial performance of British Sky Broadcasting Group plc, 2011 and 2012
- Figure 24: Financial performance of British Sky Broadcasting Group plc, Q1 2012-Q1 2013
- TalkTalk Telecom Group plc
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- Figure 25: Financial performance of TalkTalk Telecom Group plc, 2011 and 2012
- Figure 26: Financial performance of TalkTalk Telecom Group plc, Q1 2012 and Q1 2013
- Virgin Media Inc
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- Figure 27: Financial performance of Virgin Media Inc, 2010 and 2011
- Figure 28: Financial performance of Virgin Media Inc, Q3 2011-Q3 2012
- Plusnet plc
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- Figure 29: Financial performance of Plusnet plc, 2011 and 2012
Brand Research
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- Brand map
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- Figure 30: Attitudes towards and usage of brands in the bundled communications services sector, November 2012
- Correspondence analysis
- Brand attitudes
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- Figure 31: Attitudes by bundled communications services brand, November 2012
- Brand personality
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- Figure 32: Bundled communications services brand personality – macro image, November 2012
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- Figure 33: Bundled communications services brand personality – micro image, November 2012
- Brand experience
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- Figure 34: Bundled communications services brand usage, November 2012
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- Figure 35: Satisfaction with various bundled communications services brands, November 2012
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- Figure 36: Consideration of bundled communications services brands, November 2012
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- Figure 37: Consumer perceptions of current bundled communications services brand performance, November 2012
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- Figure 38: Bundled communications services brand recommendation – Net Promoter Score, November 2012
- Brand index
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- Figure 39: Bundled communications services brand index, November 2012
- Figure 40: Bundled communications services brand index vs. recommendation, November 2012
- Target group analysis
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- Figure 41: Target groups, November 2012
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- Figure 42: Bundled communications services brand usage, by target groups, November 2012
- Group One – Conformists
- Group Two – Simply the Best
- Group Three – Shelf Stalkers
- Group Four – Habitual Shoppers
- Group Five – Individualists
What Bundled Products Do Consumers Have?
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- Key points
- Internet underpins all bundle popularity
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- Figure 43: Bundles or individual communication services owned by consumers, from the single provider they pay most money to, November 2012
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- Figure 44: Ten most popular bundles or individual communication services owned by consumers, from the single provider they pay most money to, November 2012
- Younger consumers more likely to just choose broadband
- Parents with younger children more likely to purchase triple-play bundle
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- Figure 45: Purchase of triple-play broadband, phone and TV bundles, from the provider consumers pay the most money to, by age of children in the household, November 2012
- A fifth pay under £20 a month for their services
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- Figure 46: Amount paid for bundled or individual communications services, November 2012
Service Providers Used
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- Key points
- Sky and Virgin have majority market share
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- Figure 47: Bundled package and service providers, November 2012
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- Figure 48: Purchase of bundles or individual products from Sky and Virgin, by age, November 2012
- TalkTalk offering appeals regardless of income
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- Figure 49: Consumers who have purchased a bundle or service from TalkTalk, by gross annual household income, November 2012
- BT customers not sure of package details
- Service provision focii
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- Figure 50: Purchases from BT of the top ten most popular bundles or services by consumers, November 2012
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- Figure 51: Purchases from Sky of the top ten most popular bundles or services by consumers, November 2012
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- Figure 52: Purchases from TalkTalk of the top ten most popular bundles or services by consumers, November 2012
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- Figure 53: Purchases from Virgin of the top ten most popular bundles or services by consumers, November 2012
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- Figure 54: Purchases from other providers of the top ten most popular bundles or services by consumers, November 2012
Other Services Consumers Pay For
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- Key points
- Mobile most likely to be purchased alone
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- Figure 55: Other services owned by consumers, November 2012
- Over-65s more likely to stick with one provider
- 25-34s significantly more likely to purchase cable internet elsewhere
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- Figure 56: Purchase of superfast cable internet from a company other than the company consumers pay the most money to for bundled services, by age, November 2012
- BT’s IPTV offering has the potential for big returns
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- Figure 57: Companies that provide the main bundle to consumers who purchase a TV service from a second company, November 2012
What Makes Consumers Choose Their Packages?
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- Key points
- Value the most important element in package choice
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- Figure 58: Reasons that consumers choose their packages, November 2012
- Suburban and rural customers less likely to be value hunters
- Aggressive marketing to employees may boost bundle take-up
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- Figure 59: Consumers who purchased their most recent bundle because ‘It was easier to use one company than to shop around’, by employment status, November 2012
Attitudes to Bundled Communications
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- Key points
- Generic offerings stymie significant growth
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- Figure 60: Attitudes towards bundled communications, November 2012
- Customisability is king
- Younger consumers up to four times more likely to abandon fixed line phones
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- Figure 61: Agreement with the statement ‘I would not have a fixed line phone if it was not included in my bundle’, by age, November 2012
Appendix – Brand Research
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- Figure 14: Brand usage, November 2012
- Figure 15: Brand commitment, November 2012
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- Figure 16: Brand momentum, November 2012
- Figure 17: Brand diversity, November 2012
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- Figure 18: Brand satisfaction, November 2012
- Figure 19: Brand recommendation, November 2012
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- Figure 20: Brand attitude, November 2012
- Figure 21: Brand image – macro image, November 2012
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- Figure 22: Brand image – micro image, November 2012
- Figure 23: Profile of target groups, by demographics, November 2012
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- Figure 24: Psychographic segmentation, by target groups, November 2012
- Figure 25: Brand usage, by target groups, November 2012
- Brand index
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- Figure 26: Brand index, November 2012
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Appendix – What Bundled Products do Consumers Have?
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- Figure 62: Bundles or services owned by consumers, from the single provider they pay most money to, November 2012
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- Figure 63: Top ten most popular bundles or services owned by consumers, from the single provider they pay most money to, November 2012
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- Figure 64: Broadband services owned by consumers, by demographics, November 2012
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- Figure 65: Superfast internet services owned by consumers, by demographics, November 2012
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- Figure 66: No Bundle services owned by consumers, by demographics, November 2012
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- Figure 67: Most popular bundles of services owned by consumers, from the single provider they pay most money to, by demographics, November 2012
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- Figure 68: Next most popular Bundles of services owned by consumers, from the single provider they pay most money to, by demographics, November 2012
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Appendix - How Much Do Consumers Pay For Bundled Goods?
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- Figure 69: Amount paid for bundled communication services, November 2012
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- Figure 70: Amount paid for bundled communication services, by most popular bundles of services owned by consumers, from the single provider they pay most money to, November 2012
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- Figure 71: Amount paid for bundled communication services, by next most popular bundles of services owned by consumers, from the single provider they pay most money to, November 2012
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- Figure 72: Amount paid for bundled communication services, by demographics, November 2012
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Appendix – Service Providers Used
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- Figure 73: Bundled service providers, November 2012
- Figure 74: Amount paid for bundled communication services, by bundled service providers, November 2012
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- Figure 75: Bundled package service providers, by amount paid for bundled communication services, November 2012
- Figure 76: Bundles of services owned by consumers from the single provider they pay most money to, by bundled service providers, November 2012
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- Figure 77: Bundled service providers, by demographics, November 2012
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Appendix – Other Services Consumers Pay For
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- Figure 78: Other services owned by consumers, November 2012
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- Figure 79: Amount paid for bundled communication services, by other services owned by consumers, November 2012
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- Figure 80: Bundled service providers, by other services owned by consumers, November 2012
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- Figure 81: Bundles of services owned by consumers, from the single provider they pay most money to, by other services owned by consumers, November 2012
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- Figure 82: Other services owned by consumers, by demographics, November 2012
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Appendix – What Makes Consumers Choose Their Packages?
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- Figure 83: Reasons for buying bundled communication services, November 2012
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- Figure 84: Reasons for buying bundled communication services, by most popular reasons for buying packages, November 2012
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- Figure 85: Reasons for buying bundled communication services, by next most popular reasons for buying packages, November 2012
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- Figure 86: Other services owned by consumers, by most popular reasons for buying bundled communication services, November 2012
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- Figure 87: Other services owned by consumers, by next most popular reasons for buying bundled communication services, November 2012
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- Figure 88: Amount paid for bundled communication services, by most popular reasons for buying bundled communication services, November 2012
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- Figure 89: Amount paid for bundled communication services, by next most popular reasons for buying bundled communication services, November 2012
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- Figure 90: Bundled service providers, by most popular reasons for buying bundled communication services, November 2012
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- Figure 91: Bundled service providers, by next most popular reasons for buying bundled communication services, November 2012
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- Figure 92: Bundles of services owned by consumers, from the single provider they pay most money to, by most popular reasons for buying bundled communication services, November 2012
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- Figure 93: Bundles of services owned by consumers, from the single provider they pay most money to, by next most popular reasons for buying bundled communication services, November 2012
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- Figure 94: Most popular reasons for buying bundled communication services, by demographics, November 2012
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- Figure 95: Next most popular reasons for buying bundled communication services, by demographics, November 2012
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Appendix – Attitudes to Bundled Communications
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- Figure 96: Attitudes to bundled communications, November 2012
- Figure 97: Attitudes to bundled communications, by attitudes to bundled communications, November 2012
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- Figure 98: Attitudes to bundled communications, by most popular reasons for buying bundled communication services, November 2012
- Figure 99: Attitudes to bundled communications, by next most popular reasons for buying bundled communication services, November 2012
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- Figure 100: Reasons for buying bundled communication services, by attitudes to bundled communications, November 2012
- Figure 101: Other services owned by consumers, by attitudes to bundled communications, November 2012
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- Figure 102: Amount paid for bundled communication services, by attitudes to bundled communications, November 2012
- Figure 103: Bundled package service providers, by attitudes to bundled communications, November 2012
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- Figure 104: Bundles of services owned by consumers, from the single provider they pay most money to, by attitudes to bundled communications, November 2012
- Figure 105: Attitudes to bundled communications, by demographics, November 2012
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