Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Market stable but TV revenue drops
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- Figure 1: Bundled communications services market size, 2013-23
- Companies and brands
- Pay TV providers partner with streaming services in response to consumer habits
- Providers announce trials of multi-GBps broadband speeds
- Sky customers most satisfied of all providers
- The consumer
- Landline installations high but dropping
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- Figure 2: Landline service, by year, January 2019
- More consumers installing superfast broadband
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- Figure 3: Type of internet connection, January 2019
- Consumers favour streaming over pay TV
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- Figure 4: Netflix/Amazon Prime vs Pay TV services, January 2019
- Internet speed is biggest motivator to switch provider
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- Figure 5: Features of a new provider, January 2019
- Even split on mobile hotspot to replace broadband
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- Figure 6: Interest in mobile hotspot, January 2019
- What we think
Issues and Insights
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- Media hungry consumers now driven by broadband speeds and not landlines
- The facts
- The implications
- Pay TV suffers amid thriving video streaming platforms
- The facts
- The implications
The Market – What You Need to Know
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- Market stable but TV revenue drops
- Broadband connections continue to rise steadily
- Voice call minutes continue to drop massively
Market Size and Forecast
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- Market stable but TV revenue drops
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- Figure 7: Operator revenue from communication services, 2013-23
- Figure 8: Operator revenue from sale of communication services, 2013-23
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- Figure 9: Internet and data revenues, 2013-23
- Figure 10: TV subscription revenues, 2013-23
Market Drivers
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- Broadband connections continue to rise steadily
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- Figure 11: Fixed broadband connections, 2012-17
- Consumers increasingly reliant on superfast broadband
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- Figure 12: Superfast broadband connections, 2012-17
- Voice call minutes continue to drop massively
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- Figure 13: Fixed voice call minutes, 2012-17
Companies and Brands – What You Need to Know
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- BT continues to lead broadband connections
- Pay TV providers partner with streaming services in response to customer habits
- Virgin Media starts UK’s first Ultra HD entertainment channel
- Providers announce trials of multi-GBps broadband speeds
- Sky customers most satisfied of all providers
Market Share
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- BT continues to lead broadband connections
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- Figure 14: Fixed broadband market share, 2012-17
- Sky still far ahead of rivals despite marginal drop
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- Figure 15: UK household TV platforms, 2018
Launch Activity and Innovation
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- Pay TV providers partner with streaming services in response to customer habits
- Virgin Media and BT add downloading for offline viewing to mobile apps
- Virgin Media also starts UK’s first Ultra HD entertainment channel
- Providers announce trials of multi-GBps broadband speeds
- Government funding to ensure rural areas have fast broadband
Brand Research
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- Brand map
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- Figure 16: Attitudes towards and usage of selected brands, January 2019
- Key brand metrics
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- Figure 17: Key metrics for selected brands, January 2019
- Brand attitudes: consumers trust BT but willing to pay more for Sky and Virgin Media
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- Figure 18: Attitudes, by brand, January 2019
- Brand personality: Virgin Media close to Sky in being exclusive and fun
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- Figure 19: Brand personality – Macro image, January 2019
- Positivity with Sky and Virgin Media but question marks over BT and TalkTalk
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- Figure 20: Brand personality – Micro image, January 2019
- Brand analysis
- Sky customers most satisfied out of all providers
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- Figure 21: User profile of Sky, January 2019
- Virgin Media popular despite having fewer current or previous subscribers
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- Figure 22: User profile of Virgin Media, January 2019
- BT widely used but not so valued
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- Figure 23: User profile of BT, January 2019
- TalkTalk is the least recommended of the Big Four
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- Figure 24: User profile of TalkTalk, January 2019
The Consumer – What You Need to Know
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- Vast majority of consumers own landline service
- Superfast broadband gathering pace every year
- People favour streaming services over pay TV
- Almost six in ten TV subscribers don’t pay for sports
- Even split on 5G replacing home broadband
Bundle Providers Used
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- Virgin Media leads bundled communications rivals
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- Figure 25: Bundle service provider, January 2019
Ownership of Bundled Communications Products
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- Vast majority of consumers have a landline service...
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- Figure 26: Landline service, January 2019
- …but the percentage is reducing
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- Figure 27: Landline service by year, 2017-19
- Only two thirds of young Millennials have a landline service
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- Figure 28: Landline service, by generation, January 2019
- Nine in ten take internet with their landline, but less than half take TV
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- Figure 29: Other services taken from landline provider, January 2019
- Non-landline owners tend to avoid bundles altogether
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- Figure 30: Bundled services among non-landline owners, January 2019
Broadband Speeds
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- Superfast broadband gathering pace every year
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- Figure 31: Type of internet connection, January 2019
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- Figure 32: Type of internet connection, by year, 2016-19
- Virgin Media customers benefitting most from fast speeds
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- Figure 33: Type of internet connection, by provider, January 2019
- Rural locations close to average for superfast speeds
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- Figure 34: Type of internet connection, by location, January 2019
Streaming Services vs Pay TV
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- Even split on memberships for streaming services
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- Figure 35: Netflix and Amazon prime subscriptions, January 2019
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- Figure 36: Netflix and Amazon prime subscriptions by generation, January 2019
- People favour streaming services over pay TV
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- Figure 37: Netflix/Amazon Prime Video vs pay TV services, January 2019
- Figure 38: Netflix/Amazon Prime Video vs pay TV services, January 2019
Attitudes towards Bundles
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- Consumers are loyal but changing is not a hassle
- Almost six in ten TV subscribers don’t pay for sports
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- Figure 39: Attitudes towards bundles, January 2019
Attitudes towards Internet Providers and Subscriptions
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- Minority of consumers access public Wi-Fi
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- Figure 40: Attitudes towards internet providers, January 2019
- Even split on 5G replacing home broadband
- Around one third of consumers struggle to find content
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- Figure 41: Finding TV content, January 2019
- Subscriptions driven by young Millennials
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- Figure 42: Attitudes towards subscriptions, January 2019
- Most consumers against smart displays
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- Figure 43: Interest in smart displays, January 2019
Motivational Factors to Switch
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- No requirement for a landline a key motivational driver to switch
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- Figure 44: Features of a new provider, January 2019
- Figure 45: TURF Analysis – Features of new provider, January 2019
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- Figure 46: Table – TURF Analysis – Switching factors, January 2019
- TURF analysis methodology
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- Market forecasts – Best/worst case scenarios
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- Figure 47: Bundled communications market forecast best/worst case, 2018-23
- Figure 48: Pay TV market forecast best/worst case, 2018-23
- Figure 49: Internet and voice market forecast best/worst case, 2018-23
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