Table of Contents
Introduction
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- Definition
- Abbreviations
Executive Summary
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- The market
- Volume
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- Figure 1: Forecast volume of pay TV subscribers, 2008-18
- Value
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- Figure 2: Forecast value of pay TV subscriptions, 2008-18
- Market drivers
- Providers focus on triple-play bundles in order to improve retention
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- Figure 3: Take-up of bundled communications services, 2005-13
- A third of smart TV users reconsidering pay TV subscription
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- Figure 4: Attitudes towards smart TV, 2013
- Sports segment pushed on by BT cash injection
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- Figure 5: Multichannel spend (by broadcasters and service providers) and subscription revenue, by genre, 2012
- The consumer
- Sky still leads the way as its focus changes to maximising revenue from existing customers
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- Figure 6: Consumers’ subscription status and awareness of pay TV service providers, August 2013
- Freeview received by over two thirds of consumers
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- Figure 7: TV services have in the home, August 2013
- ‘Free’ BT Sport offers ensure early sign-ups
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- Figure 8: BT Sport subscription uptake, August 2013
- On-demand is now in demand amongst pay TV subscribers
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- Figure 9: Attitudes towards pay TV services, August 2013
- Almost half of non-subscribers could be tempted to sign up to pay TV
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- Figure 10: Factors that could encourage non-subscribers to pay for TV services, August 2013
- What we think
Issues in the Market
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- Will the improvement of subscription-free services limit the value of pay TV?
- How can BT use sport to win customers from its rivals?
- How can providers retain consumers beyond initial contracts?
- Are free-to-view services set to decline beyond 2013?
Trend Application
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- Trend: Nouveau Poor
- Trend: Make it Mine
- Mintel Futures: Access Anything, Anywhere
Market Drivers
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- Key points
- Providers focus on triple-play bundles in order to improve retention
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- Figure 11: Take-up of bundled communications services, 2005-13
- Figure 12: Fixed broadband market share, 2007-12
- Television has divorced from the TV
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- Figure 13: Sky Go app, shown on an iPad, launched 2011 (formerly known as Sky Player and Sky Mobile TV)
- A third of smart TV users reconsidering pay TV subscription
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- Figure 14: Attitudes towards smart TV, 2013
- Service bundling: should providers embrace competition?
- Standard of TV programming alienating older consumers…
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- Figure 15: Opinion on programme standards over the last 12 months, by age, 2012
- …. but watching television still the most popular media activity by far
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- Figure 16: Which media activity would UK adults miss the most 2005-12
- Sports segment pushed on by BT cash injection
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- Figure 17: Multichannel spend (by broadcasters and service providers) and subscription revenue, by genre, 2012
- TV advertising revenue curbed by move to digital
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- Figure 18: Total TV advertising expenditure (all channels), July-June 2008/09-2012/13
Who’s Innovating?
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- Key points
- Sky trials personalised advertising scheme
- TalkTalk launches ‘The Big Free’
- Virgin and Netflix in unlikely partnership
- Self-installations help Sky to reduce operating costs
Market Size and Forecast
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- Key points
- Package upgrades and more new subscriptions see growth continue
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- Figure 19: Total volume and value of pay TV subscriptions, 2008-18
- Forecast
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- Figure 20: Forecast volume of pay TV subscribers, 2008-18
- Figure 21: Forecast value of pay TV subscriptions, 2008-18
- Forecast methodology
Segment Performance
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- Key points
- ADSL segment cashes in on Freeview upgrades
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- Figure 22: UK multichannel TV households by platform 2008-13
- Number of homes to only use free-to-view services is set to decline in 2013
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- Figure 23: UK multichannel TV households, by subscription type, 2008-13
Market Share
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- Key points
- Pay TV share stabilising despite the introduction of BT Sport
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- Figure 24: Volume of UK TV households, by provider, 2012 and 2013
Companies and Products
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- Key points
- British Sky Broadcasting Group PLC (BSkyB)
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- Figure 25: British Sky Broadcasting (BSkyB), financial information, 2012-13
- Virgin Media Inc.
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- Figure 26: Virgin Media, financial information, 2011-12
- BT TV (part of BT Retail)
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- Figure 27: BT Retail (including BT TV), financial performance, 2012-13
- TalkTalk Telecom Group PLC
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- Figure 28: TalkTalk, financial performance 2012-13
- Freeview (DTV Services Ltd)
- Freesat
- YouView TV Ltd
Brand Communication and Promotion
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- Key points
- Sky increases ad expenditure as competition intensifies
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- Figure 29: TV service advertising expenditure, by company, 2008/09-2012/13
- Sky ads move online and outdoors
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- Figure 30: TV service advertising expenditure, by media channel, 2008/09-2012/13
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- Figure 31: TV service advertising expenditure, by media channel, 2012/13
TV Services in the Home
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- Key points
- Sky still leads the way as its focus changes to maximising existing customers
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- Figure 32: Consumers’ subscription status and awareness of pay TV service providers, August 2013
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- Figure 33: TV services subscribed to – all TV owners, August 2013
- Market stabilises, but TalkTalk shows promise
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- Figure 34: TV services subscribed to – all paid TV subscribers, July 2012 and August 2013
- BT TV has said goodbye to over half of its all-time customers
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- Figure 35: Proportion of ‘all-time’ TV subscribers who are currently taking a TV subscription from that same provider, August 2013
- Sky customers more likely to be young men
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- Figure 36: Sky TV subscribers, by age and gender, August 2013
- Lack of cable prevents Virgin Media from reaching more rural areas
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- Figure 37: TV services currently subscribed to, by area, August 2013
- TalkTalk success could depend on reputation overhaul
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- Figure 38: Pay TV complaints per 1,000 customers/connections, Q4 2011-Q1 2013, by quarter
- Freeview received by over two thirds of consumers
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- Figure 39: TV services have in the home, August 2013
- YouView mobile service could attract more young people
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- Figure 40: TV services have in the home, by age, August 2013
Consumer Uptake of and Interest in BT Sport
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- Key points
- ‘Free’ BT Sport offers ensure early sign-ups
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- Figure 41: BT Sport subscription uptake, August 2013
- A quarter of non-BT Sport subscribers show interest in signing up
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- Figure 42: Interest in signing up to BT Sport, August 2013
- Upcoming bidding wars could decide the fate of BT Sport
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- Figure 43: Preferred methods of subscribing to BT Sport, August 2013
- Freeview could use smart TV apps as a defence mechanism
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- Figure 44: Interest in signing up to BT Sport, by TV services subscribed to, August 2013
- Sky could offset the cost of BT Sport
- Lack of interest goes beyond apathy towards sport
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- Figure 45: Reasons for not being interested in BT Sport, August 2013
Attitudes towards Pay TV Services
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- Key points
- On-demand is now in demand amongst pay TV subscribers
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- Figure 46: Attitudes towards pay TV services, August 2013
- Providers can reward loyalty with long-term deals
- Bundles could help Sky to address value concerns
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- Figure 47: Attitudes towards paid TV services, by TV services subscribed to, August 2013
Ways of Attracting Non-subscribers
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- Key points
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- Figure 48: Factors that could encourage non-subscribers to pay for TV services, August 2013
- Younger consumers the most likely to upgrade
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- Figure 49: Factors that could encourage non-subscribers to pay for TV services, by age, August 2013
- Providers can lessen churn by learning from ex-customers
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- Figure 50: Factors that could encourage non-subscribers to pay for TV services, by TV services subscribed to, August 2013
Appendix – Market Size and Forecast
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- Figure 51: Forecast volume of pay TV subscribers, 2013-18
- Figure 52: Forecast value of pay TV subscriptions, 2013-18
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Appendix – TV Services in the Home
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- Figure 53: TV services subscribed to, August 2013
- Figure 54: TV services subscribed to – Sky, by demographics, August 2013
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- Figure 55: TV services subscribed to – Virgin Media, by demographics, August 2013
- Figure 56: TV services subscribed to – BT Vision, by demographics, August 2013
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- Figure 57: TV services subscribed to – TalkTalk, by demographics, August 2013
- Figure 58: TV purchasing plans, by TV services subscribed to – Sky, August 2013
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- Figure 59: TV purchasing plans, by TV services subscribed to – Virgin Media, August 2013
- Figure 60: TV purchasing plans, by TV services subscribed to – BT vision, August 2013
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- Figure 61: TV purchasing plans, by TV services subscribed to – TalkTalk TV, August 2013
- Figure 62: TV services have in the home, August 2013
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- Figure 63: Most common TV services in the home, by demographics, August 2013
- Figure 64: Next most common TV services have in the home, by demographics, August 2013
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- Figure 65: TV services have in the home, by TV services subscribed to – Sky, August 2013
- Figure 66: TV services have in the home, by TV services subscribed to – Virgin Media, August 2013
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- Figure 67: TV services have in the home, by TV services subscribed to – BT vision, August 2013
- Figure 68: TV services have in the home, by TV services subscribed to – TalkTalk TV, August 2013
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Appendix – Consumer Uptake of and Interest in BT Sport
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- Figure 69: BT sport subscription uptake, August 2013
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- Figure 70: BT Sport subscription uptake, by demographics, August 2013
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- Figure 71: Interest in signing up to BT Sport, August 2013
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- Figure 72: Interest in signing up to BT Sport, by demographics, August 2013
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- Figure 73: Preferred methods of subscribing to BT Sport, August 2013
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- Figure 74: Preferred methods of subscribing to BT Sport, by demographics, August 2013
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- Figure 75: Reasons for not being interested in BT Sport, August 2013
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- Figure 76: Most common reasons for not being interested in BT Sport, by demographics, August 2013
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- Figure 77: Next most common reasons for not being interested in BT Sport, by demographics, August 2013
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Appendix – Attitudes towards Pay TV Services
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- Figure 78: Attitudes towards paid TV services, August 2013
- Figure 79: Most common attitudes towards paid TV services, by demographics, August 2013
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- Figure 80: Next most common attitudes towards paid TV services, by demographics, August 2013
- Figure 81: Least common attitudes towards paid TV services, by demographics, August 2013
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- Figure 82: Attitudes towards paid TV services, by TV services subscribed to – Sky, August 2013
- Figure 83: Attitudes towards paid TV services, by TV services subscribed to – Virgin Media, August 2013
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- Figure 84: Attitudes towards paid TV services, by TV services subscribed to – BT Vision, August 2013
- Figure 85: Attitudes towards paid TV services, by TV services subscribed to – TalkTalk, August 2013
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Appendix – Ways of Attracting Non-subscribers
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- Figure 86: Factors that could encourage non-subscribers to pay for TV services, August 2013
- Figure 87: Most common factors that could encourage non-subscribers to pay for TV services, by demographics, August 2013
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- Figure 88: Next most common factors that could encourage non-subscribers to pay for TV services, by demographics, August 2013
- Figure 89: Factors that could encourage non-subscribers to pay for TV services, by TV services have in the home, August 2013
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- Figure 90: Factors that could encourage non-subscribers to pay for TV services, by TV services subscribed to – Sky, August 2013
- Figure 91: Factors that could encourage non-subscribers to pay for TV services, by TV services subscribed to – Virgin Media, August 2013
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- Figure 92: Factors that could encourage non-subscribers to pay for TV services, by TV services subscribed to – BT Vision and TalkTalk, August 2013
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