Bundled Communications Services - UK - March 2017
“With the launch of Sky Mobile in January 2017, the big four bundle providers now all offer quad-play options. Data flexibility will be an important promotional feature as providers look to attract increasingly data-hungry consumers. Providers can also utilise their exclusive TV content to help prompt mobile take-up”.
– Rebecca McGrath, Senior Media Analyst
This Report discusses the following key topics:
- Encouraging the purchase of mobile-inclusive bundles
- Extra features and exclusive content are key to holding off the streaming threat
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- Market data
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Table of contents
Overview
- What you need to know
- Products covered in this report
- What you need to know
Executive Summary
- The market
- Further growth for communications market
- Figure 1: Operator revenue from sale of communications* services, 2011-21
- The number of superfast broadband connections increases
- BT ordered to split from Openreach
- Volume of fixed calls falls further
- Streaming services offer challenge to pay-TV
- Key players
- BT remains biggest payer in broadband market
- Figure 2: Retail fixed residential broadband market shares, 2011-15
- Sky becomes quad-play
- Sky TV to become available without a dish
- Virgin improves TV service
- TalkTalk relaunches pay-as-you-go streaming service
- The consumer
- Nine in ten get internet with their landline
- Figure 3: Landline bundles, December 2016
- TV and internet is the most popular non-landline bundle
- Figure 4: Bundles without a landline, December 2016
- Almost half of bundled internet connections are superfast
- Figure 5: Type of internet connection, December 2016
- Big four account for 78% of bundle owners
- Figure 6: Bundle providers, December 2016
- Friends and family are the most influential promotional source
- Figure 7: Factors influencing choice of bundle, December 2016
- Hardware options and upgrades are enticing
- Figure 8: Factors encouraging the purchase of mobile inclusive bundles, December 2016
- More flexible TV contracts may be the way forward
- Figure 9: Attitudes towards Bundled Services, December 2016
- What we think
Issues and Insights
- Encouraging the purchase of mobile-inclusive bundles
- The facts
- The implications
- Extra features and exclusive content are key to holding off the streaming threat
- The facts
- The implications
- Encouraging the purchase of mobile-inclusive bundles
The Market – What You Need to Know
- Further growth for communications market
- The number of superfast broadband connections increases
- BT ordered to split from Openreach
- 5G could offer future challenge to fixed broadband
- Volume of fixed calls falls further
- Streaming services offer challenge to pay-TV
- Further growth for communications market
Market Size and Forecast
- Further growth for communications market
- The impact of Brexit
- Figure 10: Operator revenue from sale of communications* services, 2011-21
- Figure 11: Operator revenue from sale of communications* services, 2011-21
- Forecasts
- Figure 12: Forecast value of operator revenue from sale of internet services, 2011-21
- Figure 13: Forecast value of operator revenue from sale of pay-TV services, 2011-21
- Figure 14: Forecast value of operator revenue from sale of fixed voice services, 2011-21
- Forecast methodology
- Further growth for communications market
Market Drivers
- Mobile device ownership grows further
- Figure 15: Household ownership of select digital devices, September 2015 and 2016
- The number of superfast broadband connections increases
- Figure 16: Superfast (≥30Mbps) fixed broadband connections, 2011-15
- BT ordered to split from Openreach
- 5G could offer future challenge to fixed broadband
- The connected home will increase demand for internet
- Volume of fixed calls falls further
- Figure 17: Outgoing fixed and mobile voice call volumes, 2011-15
- Streaming services offer challenge to pay-TV
- Figure 18: Streaming services viewed, December 2016
- Mobile device ownership grows further
Key Players – What You Need to Know
- BT remains biggest payer in broadband market
- Sky becomes quad-play
- Other providers look to improve their quad-play offerings
- Sky TV to become available without a dish
- Virgin improves TV service
- TalkTalk relaunches pay-as-you-go streaming service
- BT remains biggest payer in broadband market
Market Share
- BT remains biggest payer in broadband market
- Figure 19: Retail fixed residential broadband market shares, 2011-15
- Sky dominates TV market
- Figure 20: Volume of UK TV subscribers, by provider, Q4 2015
- BT remains biggest payer in broadband market
Launch Activity and Innovation
- Sky becomes quad-play
- Other providers look to improve their quad-play offerings
- Sky TV to become available without a dish
- Now TV launches UK’s first contract-free triple-play bundle
- Virgin improves TV service
- TalkTalk relaunches pay-as-you-go streaming service
- BT looks to eliminate dead spots
- Sky becomes quad-play
Brand Research
- Brand map
- Figure 21: Attitudes towards and usage of selected brands, February 2017
- Key brand metrics
- Figure 22: Key metrics for selected brands, February 2017
- Brand attitudes: Sky is viewed as the most innovative brand
- Figure 23: Attitudes, by brand, February 2017
- Brand personality: Sky and Virgin stand apart with upbeat brand images
- Figure 24: Brand personality – Macro image, February 2017
- TalkTalk is battling negative associations
- Figure 25: Brand personality – Micro image, February 2017
- Brand analysis
- Virgin Media’s vibrant brand image attracts younger consumers
- Figure 26: User profile of Virgin Media, February 2017
- Sky has the most positive brand image
- Figure 27: User profile of Sky, February 2017
- BT’s traditional image has drawbacks
- Figure 28: User profile of BT, February 2017
- TalkTalk does not inspire trust
- Figure 29: User profile of TalkTalk, February 2017
The Consumer – What You Need to Know
- Nine in ten still locked into landlines
- Almost half of bundled internet connections are superfast
- Many remain resistant to the idea of including mobile
- Hardware options and upgrades are enticing
- Friends and family are the most influential promotional source
- More flexible TV contracts may be the way forward
- Content remains key for pay-TV services
- Nine in ten still locked into landlines
Ownership of Bundled Services
- Nine in ten still locked into landlines
- Figure 30: Landline ownership, December 2016
- Nine in ten get internet with their landline
- Figure 31: Landline bundles, December 2016
- TV and internet is the most popular non-landline bundle
- Figure 32: Bundles without a landline, December 2016
- Nine in ten still locked into landlines
Type of Internet Connection
- Almost half of bundled internet connections are superfast
- Figure 33: Type of internet connection, December 2016
- Almost half of bundled internet connections are superfast
Bundle Providers
- Big four account for 78% of bundle owners
- Figure 34: Bundle providers, December 2016
- Two out of three people were already with their provider when purchasing their bundle
- Figure 35: Staying with a provider, December 2016
- Big four account for 78% of bundle owners
Factors Influencing Choice of Bundle
- Friends and family are the most influential promotional source
- Sky has the most effective TV adverts
- Figure 36: Factors influencing choice of bundle, December 2016
- Younger people are easier to influence
- Figure 37: Repertoire of factors which influence choice of bundle, by age, December 2016
- Friends and family are the most influential promotional source
Encouraging Purchase of Mobile Inclusive Bundles
- Many remain resistant to the idea of including mobile
- Hardware options and upgrades are enticing
- Figure 38: Factors encouraging the purchase of mobile inclusive bundles, December 2016
- Better deals for data-hungry users
- Figure 39: Would be most encouraged to include mobile by getting more data for their money, by age, December 2016
- Free add-on services
- Many remain resistant to the idea of including mobile
Attitudes towards Bundled Services
- Many are frustrated by having to purchase a landline
- Figure 40: Attitudes towards bundled services, December 2016
- More flexible TV contracts may be the way forward
- Content remains key for pay-TV services
- Extra features appeal to younger people and families
- Figure 41: Attitude towards statement ‘Extra features within a pay-TV service are worth paying more for’, by age, December 2016
- Figure 42: Attitude towards statement ‘Extra features within a pay-TV service are worth paying more for’, by presence of own children, December 2016
- Many are frustrated by having to purchase a landline
Appendix – Data Sources, Abbreviations and Supporting Information
- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
- Forecast Methodology
- Forecasts
- Figure 43: Forecast value of operator revenue from sale of communications services*, 2011-21
- Figure 44: Forecast value of operator revenue from sale of pay-TV services, 2010-21
- Figure 45: Forecast value of operator revenue from sale of internet services, 2011-21
- Figure 46: Forecast value of operator revenue from sale of fixed voice services, 2011-21
- Forecast Methodology
Companies Covered
To learn more about the companies covered in this report please contact us.
Bundled Communications Services - UK - March 2017