What you need to know

This report explores subscription to pay TV, home phone, and home internet service, with a particular focus on the pay TV industry. Discussions include the emergence of competing internet-based pay TV service, attitudes and interest in higher-speed internet, the role of age and household income in subscription, subscription to bundled services, average spend, how carriers are innovating in set-top boxes, and interest in changing carriers or adding a new service, among other topics.

The broad array of subjects covered provide an overview of the industry as a whole, and an in-depth understanding of consumer sentiment toward these services, including both current subscribers, and those electing not to opt into pay TV subscription service.

Definition

This report covers subscriptions for television, home internet, and home phone service, including when these services are sold as bundles from the same provider and when sold individually. Cellular service is discussed in relation to the desire for a single bundled product including all four services, but is not the primary focus of the report. This report builds upon research conducted for Mintel’s Pay TV – US, October 2013 and Bundled Communication Services – US, November 2013.

Data sources

Sales data

  • Market Size: Created by Mintel using data from the US Centers for Disease Control and Prevention, Pew Internet and American Life Project, and Experian Marketing Services.

  • Leading Companies: Subscriber counts are derived from the Security and Exchange Commission filings for providers of pay TV, home phone, and home internet services.

Consumer survey data

For the purposes of this report, Mintel commissioned exclusive consumer research through GMI to explore consumer attitudes and behavior toward bundled communication services. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted in July 2014 among a sample of 2,000 adults aged 18+ with access to the internet.

Mintel selects survey respondents so that they are proportionally balanced to the entire US adult population based on the key demographics of gender, age, household income, and region. Mintel also slightly oversamples, relative to the population, respondents that are Hispanic or Black to ensure an adequate representation of these groups in the survey results. Please note that Mintel surveys are conducted online and in English only. Hispanics who are not online and/or do not speak English are not included in the survey results.

Mintel has also analyzed data from Experian Marketing Services, using the Experian Marketing Services National Consumer Study and the Experian Marketing Services National Hispanic Consumer Study, with results weighted to represent the US adult population. Studies used in this report include:

  • Experian Marketing Services Winter 2010, July 2009-March 2010: results based on 11,975 adults aged 18+

  • Experian Marketing Services Winter 2012, August 2011-March 2012: results based on 12,212 adults aged 18+

  • Experian Marketing Services Winter 2014, August 2013-March 2014: results based on 12,305 adults aged 18+

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.

Direct marketing creative

Direct marketing created from Mintel Comperemedia, a searchable database tracking direct mail, print, and online advertising in the US and Canada, as well as email in the US. Comperemedia tracks information across eight sectors: Banking, Credit Card, Investments, Insurance, Mortgage and Loan, Telecom, Travel and Leisure, Retail and Automotive. For more information, please contact Account Services Management at 312.450.6353 or www.mintel.com.

Abbreviations and terms

Abbreviations

The following is a list of abbreviations used in this report:

4K Four thousand lines of vertical resolution
ARPU Average revenue per user
CDC Centers for Disease Control and Prevention
DSL Digital subscriber line
DVR Digital video recorder
Gbps Gigabit(s) per second
HD High-definition
ISP Internet service provider
: :
: :

Terms

The following terms are used in this report:

Cord-cutter Individual or household that previously subscribed to a home communication service, but now has canceled service.
Double play A household subscription to two of the following services from the same provider: pay TV, home internet, and home phone.
Fixed-point Internet service to a fixed point. Unless specified otherwise, refers to residential services in this report.
Home communications Used in this report to refer to the combined market of three home subscription services: pay TV, home internet, and home phone.
Over-the-top content Video programming carried “over-the-top” of internet service, as opposed to through a pay TV service.
Smart TV A television that can add functions through acquiring additional pieces of software (or apps) from the internet. Smart TVs can be used to access internet video content, such as from Netflix, Hulu, or YouTube. Some consumers may define their television as a smart TV if it can access online video content, regardless of whether it is capable of downloading and using add-on pieces of software.
Wireline Conventional reference among telco providers to distinguish service from wireless (or cellular) telephony, with three distinct services enabled over the wire: video, data, and voice.
Back to top