Table of Contents
Executive Summary
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- The market
- Value of communications services continues steady growth
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- Figure 1: Operator revenue from sale of communications services*, 2010-20
- The consumer
- Younger people are more likely to go for quad-play
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- Figure 2: Types of bundles, December 2015
- Nearly a quarter pay more than £50
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- Figure 3: Bundle price, December 2015
- A fifth have downgraded their bundles in the last year
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- Figure 4: Bundle behaviour, December 2015
- Younger people are less likely to be satisfied with customer service
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- Figure 5: Attitudes towards bundled services, December 2015
- A fifth of men have been influenced by the change in sporting rights
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- Figure 6: TV bundle behaviour, December 2015
- What we think
Issues and Insights
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- Exclusive TV content is vital
- The facts
- The implications
- Providers push quad-play with their own mobile service
- The facts
- The implications
The Market – What You Need to Know
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- Value of communications services continues steady growth
- Ofcom rules that BT should open up infrastructure
- TalkTalk customer data was leaked
- Mobile device growth pushes need for fast internet
- Superfast broadband use continues to rise
- All landline call types on the decline
Market Size and Forecast
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- Value of communications services continues steady growth
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- Figure 7: Operator revenue from sale of communications services*, 2010-20
- Forecasts
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- Figure 8: Forecast value of operator revenue from sale of internet services, 2010-20
- Figure 9: Forecast value of operator revenue from sale of pay-TV services, 2010-20
- Figure 10: Forecast value of operator revenue from sale of fixed voice services, 2010-20
- Forecast methodology
Market Drivers
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- Mobile device growth pushes need for fast internet
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- Figure 11: Household ownership of selected digital devices, October 2014 – September 2015
- Superfast broadband use continues to rise
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- Figure 12: Superfast fixed broadband connections, 2009-14
- All landline call types on the decline…
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- Figure 13: Fixed voice call volume, by type of call, 2010-14
- …but no increase in mobile-only homes
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- Figure 14: Cross-ownership of fixed and mobile voice telephony services, 2011-15
- Mobile calls also declining
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- Figure 15: Average monthly outbound mobile call minutes, by subscription type, 2010-14
- Video streaming offers alternative to pay-TV
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- Figure 16: Used video streaming service in last three months, December 2015
- Ofcom rules that BT should open up infrastructure
- TalkTalk customer data was leaked
Key Players – What You Need to Know
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- Sky and BT’s share of the broadband market continues to rise
- BT still dominates fixed call market
- BT moves back into mobile market and acquires EE
- Other providers also enter the quad-play market
- Sky Q launches
- BT Sport welcomes the Champions League
Market Share
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- Sky and BT’s share of the broadband market continues to rise
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- Figure 17: Retail fixed broadband market shares, 2010-14
- BT still dominates fixed call market
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- Figure 18: Share of fixed voice call minutes, 2010-14
- Sky dominates TV but BT is growing
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- Figure 19: Volume of UK TV households, by provider, 31 March 2015
Brand Research
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- What you need to know
- Brand map
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- Figure 20: Attitudes towards and usage of selected brands, January 2016
- Key brand metrics
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- Figure 21: Key metrics for selected brands, January 2016
- Brand attitudes: BT still has strong reputation
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- Figure 22: Attitudes, by brand, January 2016
- Brand personality: TalkTalk has some negative associations
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- Figure 23: Brand personality – macro image, January 2016
- Virgin is an appealing brand
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- Figure 24: Brand personality – micro image, January 2016
- Brand analysis
- Sky is viewed as both innovative and reliable
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- Figure 25: User profile of Sky, January 2016
- Virgin Media has a fun image
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- Figure 26: User profile of Virgin Media, January 2016
- BT is viewed as outdated
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- Figure 27: User profile of BT, January 2016
- TalkTalk has to combat its negative image
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- Figure 28: User profile of TalkTalk, January 2016
Launch Activity and Innovation
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- More providers focus on quad-play market
- BT Mobile launches with SIM-only bundles
- BT acquires EE
- Vodafone enters into broadband and pay-TV markets
- Sky partners with O2
- Sky Q launches
- BT Sport welcomes the Champions League
- Blacklist announced by BT to help prevent nuisance calls
The Consumer – What You Need to Know
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- Most people still have a landline connection
- Nearly half have superfast/fibre internet
- Younger people more likely to have a quad-play bundle
- Millennials are also willing to share data for discounts
- A fifth of men have been influenced by the change in sporting rights
- Half of 16-24s would rather use a streaming service
Landline Bundles
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- Most people still have a landline connection
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- Figure 29: Landline ownership, December 2015
- 16-24s are rejecting landlines
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- Figure 30: Consumers who do not have a landline phone service, by age, December 2015
- Nearly all landline connections come with the internet
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- Figure 31: Landline bundles, December 2015
Bundles Without Landline
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- TV and internet is the most popular bundle without a landline
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- Figure 32: Bundle without landline, December 2015
- More younger people have bundles without a landline
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- Figure 33: Bundle without landline, by age, December 2015
- Men are more likely to have a dual-play TV and internet bundle
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- Figure 34: Bundle without landline, by gender, December 2015
Type of Bundles and Price
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- Landline and internet is most popular bundle
- Younger people are more likely to go for quad-play
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- Figure 35: Types of bundles, December 2015
- Quad-play bundles are mainly from Virgin Media
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- Figure 36: Bundle providers, by types of bundles, December 2015
- Nearly a quarter pay more than £50
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- Figure 37: Bundle price, December 2015
Type of Internet Connection
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- Nearly half have superfast/fibre internet
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- Figure 38: Type of internet connection, December 2015
- Men more likely to have superfast internet
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- Figure 39: Type of internet connection, by gender, December 2015
Bundle Behaviour
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- A fifth have downgraded their bundles in the last year
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- Figure 40: Bundle behaviour, December 2015
- Many people are fluid with provider
Attitudes towards Bundled Services
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- Many find it difficult to find the best bundle
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- Figure 41: Attitudes towards bundled services, December 2015
- Younger people are less likely to be satisfied with customer service
- Half of 16-24s would rather use a streaming service
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- Figure 42: Prefer to use a screaming service than buy/renew a pay-TV subscription with their bundle provider, by age, December 2015
- Millennials are also willing to share data for discounts
TV Bundle Behaviour
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- TV content is important when selecting a provider
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- Figure 43: TV bundle behaviour, December 2015
- A fifth of men have been influenced by the change in sports rights between Sky and BT
- Streaming is important for younger customers
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- Brand map
Appendix – Market Size and Forecast
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- Forecast Methodology
- Forecasts
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- Figure 44: Forecast value of operator revenue from sale of fixed voice services, 2010-20
- Figure 45: Forecast value of operator revenue from sale of pay-TV services, 2010-20
- Figure 46: Forecast value of operator revenue from sale of internet services, 2010-20
- Figure 47: Forecast value of operator revenue from sale of fixed voice services, 2010-20
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