866-997-4948(US-Canada Toll Free)

BUNDLED COMMUNICATIONS SERVICES-UK-MARCH 2018

Published By :

Mintel

Published Date : Mar 2018

Category :

Telecommunications

No. of Pages : N/A

Investment in fibre-to-the-premises will dramatically increase broadband speeds for consumers, and lead to increased revenue for operators as they charge more for ultrafast connections. Meanwhile, providers have also been benefitting from increasing uptake of mobile as part of a bundle of services, and effective handling of competition from over-the-top media. By improving and diversifying their own video content, pay-TV can continue to cater to households expecting shows suitable for the whole family.

Table of Contents

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Speed upgrades drive revenue growth
Figure 1: Forecast value of operator revenue from sale of communications services, 2012-22
Landline usage continues to plummet
Superfast broadband ownership continues to increase
Government legislation brings faster internet to rural homes
OTT streaming services increasing pressure on pay-TV
Figure 2: Use of paid-for services, June 2017
Key players
Comcast prompts a potential bidding war for Sky
BT increases broadband market share
Figure 3: Retail fixed broadband market share, 2011-16
Fibre-to-the-premises (FTTP) picks up speed
Sky and BT to supply channels across services
The consumer
More than 90% of landline owners take at least one other product from their provider
Figure 4: Services bought as a bundle, 2016-17
A quarter of bundles now contain mobile
Two thirds of bundles purchased from Sky, Virgin, or BT
Figure 5: Bundle service provider, November 2017
Over half of bundles include a TV service
Over half of customers are loyal to their provider
Figure 6: Consumer activity related to their home bundle service, November 2017
Set-top boxes commonly used to access streaming services
Internet in every room of the house a strong selling point
Figure 7: Consumer attitudes to home bundle services, November 2017
Consumer knowledge of Ultra HD/4K is still low
Some resistance to adding mobile to a bundle
Variety of content the most important factor for TV
For mobile, consumers want a familiar network
Figure 8: Important factors when taking a TV package as part of a bundle, November 2017
Figure 9: Important factors when taking a mobile package as part of a bundle, November 2017
What we think
ISSUES AND INSIGHTS
A battle for premium TV content
The facts
The implications
The rise of ultrafast broadband
The facts
The implications
Quad-play bundles on the rise
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Speed upgrades drive revenue growth
Broadband and TV segments grow whilst fixed-line remains stable
Landline usage continues to plummet
Superfast broadband ownership continues to increase
Government legislation brings faster internet to rural homes
OTT streaming services increasing pressure on pay-TV
MARKET SIZE AND FORECAST
Speed upgrades drive revenue growth
Figure 10: Forecast value of operator revenue from sale of communications services, 2012-22
Figure 11: Operator revenue from sale of communications services, 2012-22
Segment forecasts
Figure 12: Forecast value of operator revenue from sale of internet services, 2012-22
Figure 13: Forecast value of operator revenue from sale of pay-tv services, 2012-22
Figure 14: Forecast value of operator revenue from sale of fixed voice services, 2012-22
Forecast methodology
MARKET DRIVERS
Landline usage continues to plummet
Figure 15: Fixed landline usage by number of minutes, and average monthly revenue per voice connection, 2011-16
Superfast broadband ownership continues to increase
Figure 16: Superfast (? 30Mbps) broadband connections in the UK
Government legislation brings faster internet to rural homes
OTT streaming services increasing pressure on pay-TV
Figure 17: Use of paid-for services, June 2017
Figure 18: Ownership of set-top boxes and streaming devices, October 2017
Comcast prompt a potential bidding war for Sky
KEY PLAYERS – WHAT YOU NEED TO KNOW
Comcast prompts a potential bidding war for Sky
BT increases broadband market share
Fibre-to-the-premises (FTTP) picks up speed
Sky and BT to supply channels across services
MARKET SHARE
BT increases broadband market share
Figure 19: Retail fixed broadband market share, 2011-16
Sky remains dominant in the pay-TV market
Figure 20: UK household TV platforms, 2017.
LAUNCH ACTIVITY AND INNOVATION
Fibre-to-the-premises (FTTP) picks up speed
BT to offer guaranteed 100Mb broadband
Automatic compensation for poor service
Sky and BT to supply channels across services
Premier League rights for 2019-22 seasons raise less than expected
BRAND RESEARCH
Brand map
Figure 21: Attitudes towards and usage of selected brands, December 2017
Key brand metrics
Figure 22: Key metrics for selected brands, December 2017
Brand attitudes: BT a well-known and trusted brand, but lacks the innovation of Virgin Media and Sky
Figure 23: Attitudes, by brand, December 2017
Brand personality: Sky maintains a fun and exclusive image
Figure 24: Brand personality – macro image, December 2017
Sky and Virgin lead the way with desirable qualities
Figure 25: Brand personality – micro image, December 2017
Brand analysis
Sky’s image of exclusivity and innovation attracts an affluent market
Figure 26: User profile of Sky, December 2017
Virgin Media’s cool brand image continues to appeal to a younger market
Figure 27: User profile of Virgin Media, December 2017
BT viewed as a low-risk option with strong efficiency and reliability
Figure 28: User profile of BT, December 2017
TalkTalk seen as unexciting, but a cheap option
Figure 29: User profile of TalkTalk, December 2017
THE CONSUMER – WHAT YOU NEED TO KNOW
More than 90% of landline owners take at least one other product from their provider
Two thirds of bundles purchased from Sky, Virgin, or BT
Over half of bundles include a TV service
Over half of customers are loyal to their provider
Set-top boxes commonly used to access streaming services
Consumer knowledge of Ultra HD/4K is still low
Variety of content the most important factor for TV
For mobile, consumers want a familiar network
OWNERSHIP OF BUNDLED COMMUNICATIONS PRODUCTS
More than 90% of landline owners take at least one other product from their provider
Figure 30: Ownership of a landline phone service in the home, November 2017
Figure 31: Services bought from the same company that supplies landline phone service
Figure 32: Bundles of services without a landline bought from a single provider, November 2017
Landline with only internet the most popular choice
A quarter of bundles now contain mobile
Figure 33: Services bought as a bundle, 2016-17
BUNDLE PROVIDERS AND INTERNET SPEEDS
Two thirds of bundles purchased from Sky, Virgin, or BT
Figure 34: Bundle service provider, November 2017
Superfast broadband take-up increases
Figure 35: Consumers’ internet speed, 2016-17
Virgin Media leads the way with internet speeds
Figure 36: Proportion of consumers who report being on a superfast broadband connection, by bundle provider, November 2017
PAY-TV SERVICES
Over half of bundles include a TV service
Figure 37: Proportion of consumers with/without TV in their bundle service
Key Driver Analysis – Inclusion of pay-TV in bundles
Methodology
Families look to pay-TV to meet their varying needs
Sky and Virgin Media dominate the pay-TV market
Figure 38: Key drivers of having TV in a bundle of services, November 2017
BUNDLED SERVICE-RELATED ACTIVITIES
The bulk of consumers are satisfied with internet reliability
Figure 39: Consumer activity related to their home bundle service, November 2017
Over half of customers are loyal to their provider
Figure 40: Proportion of bundle owners researching a new bundle service, by age, November 2017
Upgrades more common than removing services
Set-top boxes commonly used to access streaming services
ATTITUDES TO BUNDLED SERVICES
Internet in every room of the house a strong selling point
Figure 41: Consumer attitudes to home bundle services, November 2017
Consumer knowledge of Ultra HD/4K is still low
Streaming services a draw for younger consumers
Figure 42: Consumer attitudes to pay-tv and streaming services, by age, November 2017
Some resistance to adding mobile to a bundle
UPTAKE OF PAY-TV AND MOBILE IN BUNDLE
Variety of content the most important factor for TV
4K content isn’t on consumers’ radar
Figure 43: Important factors when taking a TV package as part of a bundle, November 2017
For mobile, consumers want a familiar network
A third want perks from bundling mobile with household services
Figure 44: Important factors when taking a mobile package as part of a bundle, November 2017
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Forecasts
Figure 45: Forecast value of operator revenue from sale of communications services, 2017-22
Figure 46: Forecast value of operator revenue from sale of internet services, 2017-22
Figure 47: Forecast value of operator revenue from sale of pay-tv services, 2017-22
Figure 48: Forecast value of operator revenue from sale of fixed voice services, 2017-22
Forecast methodology
APPENDIX – KEY DRIVER ANALYSIS
Interpretation of results
Figure 49: Key drivers of having TV in a bundle of services – key driver output, November 2017

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *