Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Bundled Communications Services - UK - March 2019

Covered in this report

This report looks at the sale and provision of telecommunication products to consumers. Telecommunication products include fixed-line telephony, mobile telephony, internet and television. Individually these are known as ‘services’. When two or more services are sold to a consumer by the same provider at the same time, they are referred to as a ‘bundle’. Specifically, two services sold at the same time are a dual-play bundle, three services sold at the same time are a triple-play bundle, and four services sold at the same time are a quad-play bundle.

The ‘Big Four’, when referenced as such, refers to BT, Sky, TalkTalk and Virgin Media.

Services like Netflix are referred to as over-the-top media: video or audio content delivered over the internet by a third party, carried down to the consumer’s home by a provider, but free of control from it.

“Consumers are moving towards streaming services to access content, which will concern pay TV providers as it is impacting their revenue. Also, with 4K content accounting for a larger part of people’s viewing, they are requiring faster internet connections; 5G and the next generation of fibre broadband are likely to address this demand.”
– Zach Emmanuel, Consumer Technology Analyst

This Report looks at the following areas:

  • Media hungry consumers now driven by broadband speeds and not landlines
  • Pay TV suffers amid thriving video streaming platforms

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • The market
            • Market stable but TV revenue drops
              • 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
                        • Figure 2: Landline service, by year, January 2019
                      • More consumers installing superfast broadband
                        • Figure 3: Type of internet connection, January 2019
                      • Consumers favour streaming over pay TV
                        • Figure 4: Netflix/Amazon Prime vs Pay TV services, January 2019
                      • Internet speed is biggest motivator to switch provider
                        • Figure 5: Features of a new provider, January 2019
                      • Even split on mobile hotspot to replace broadband
                        • Figure 6: Interest in mobile hotspot, January 2019
                      • What we think
                      • Issues and Insights

                        • 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

                                    • Market stable but TV revenue drops
                                      • Broadband connections continue to rise steadily
                                        • Voice call minutes continue to drop massively
                                        • Market Size and Forecast

                                          • Market stable but TV revenue drops
                                            • Figure 7: Operator revenue from communication services, 2013-23
                                            • Figure 8: Operator revenue from sale of communication services, 2013-23
                                            • Figure 9: Internet and data revenues, 2013-23
                                            • Figure 10: TV subscription revenues, 2013-23
                                        • Market Drivers

                                          • Broadband connections continue to rise steadily
                                            • Figure 11: Fixed broadband connections, 2012-17
                                          • Consumers increasingly reliant on superfast broadband
                                            • Figure 12: Superfast broadband connections, 2012-17
                                          • Voice call minutes continue to drop massively
                                            • Figure 13: Fixed voice call minutes, 2012-17
                                        • Companies and Brands – What You Need to Know

                                          • 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

                                                    • BT continues to lead broadband connections
                                                      • Figure 14: Fixed broadband market share, 2012-17
                                                    • Sky still far ahead of rivals despite marginal drop
                                                        • Figure 15: UK household TV platforms, 2018
                                                    • Launch Activity and Innovation

                                                      • 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

                                                                  • Brand map
                                                                    • Figure 16: Attitudes towards and usage of selected brands, January 2019
                                                                  • Key brand metrics
                                                                    • Figure 17: Key metrics for selected brands, January 2019
                                                                  • Brand attitudes: consumers trust BT but willing to pay more for Sky and Virgin Media
                                                                    • Figure 18: Attitudes, by brand, January 2019
                                                                  • Brand personality: Virgin Media close to Sky in being exclusive and fun
                                                                    • Figure 19: Brand personality – Macro image, January 2019
                                                                  • Positivity with Sky and Virgin Media but question marks over BT and TalkTalk
                                                                    • Figure 20: Brand personality – Micro image, January 2019
                                                                  • Brand analysis
                                                                    • Sky customers most satisfied out of all providers
                                                                      • Figure 21: User profile of Sky, January 2019
                                                                    • Virgin Media popular despite having fewer current or previous subscribers
                                                                      • Figure 22: User profile of Virgin Media, January 2019
                                                                    • BT widely used but not so valued
                                                                      • Figure 23: User profile of BT, January 2019
                                                                    • TalkTalk is the least recommended of the Big Four
                                                                      • Figure 24: User profile of TalkTalk, January 2019
                                                                  • The Consumer – What You Need to Know

                                                                    • 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

                                                                              • Virgin Media leads bundled communications rivals
                                                                                • Figure 25: Bundle service provider, January 2019
                                                                            • Ownership of Bundled Communications Products

                                                                              • Vast majority of consumers have a landline service...
                                                                                • Figure 26: Landline service, January 2019
                                                                              • …but the percentage is reducing
                                                                                • Figure 27: Landline service by year, 2017-19
                                                                              • Only two thirds of young Millennials have a landline service
                                                                                • Figure 28: Landline service, by generation, January 2019
                                                                              • Nine in ten take internet with their landline, but less than half take TV
                                                                                • Figure 29: Other services taken from landline provider, January 2019
                                                                              • Non-landline owners tend to avoid bundles altogether
                                                                                • Figure 30: Bundled services among non-landline owners, January 2019
                                                                            • Broadband Speeds

                                                                              • Superfast broadband gathering pace every year
                                                                                • Figure 31: Type of internet connection, January 2019
                                                                                • Figure 32: Type of internet connection, by year, 2016-19
                                                                              • Virgin Media customers benefitting most from fast speeds
                                                                                  • Figure 33: Type of internet connection, by provider, January 2019
                                                                                • Rural locations close to average for superfast speeds
                                                                                  • Figure 34: Type of internet connection, by location, January 2019
                                                                              • Streaming Services vs Pay TV

                                                                                • Even split on memberships for streaming services
                                                                                  • Figure 35: Netflix and Amazon prime subscriptions, January 2019
                                                                                  • Figure 36: Netflix and Amazon prime subscriptions by generation, January 2019
                                                                                • People favour streaming services over pay TV
                                                                                    • 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

                                                                                  • Consumers are loyal but changing is not a hassle
                                                                                    • Almost six in ten TV subscribers don’t pay for sports
                                                                                      • Figure 39: Attitudes towards bundles, January 2019
                                                                                  • Attitudes towards Internet Providers and Subscriptions

                                                                                    • Minority of consumers access public Wi-Fi
                                                                                      • Figure 40: Attitudes towards internet providers, January 2019
                                                                                    • Even split on 5G replacing home broadband
                                                                                      • Around one third of consumers struggle to find content
                                                                                        • Figure 41: Finding TV content, January 2019
                                                                                      • Subscriptions driven by young Millennials
                                                                                        • Figure 42: Attitudes towards subscriptions, January 2019
                                                                                      • Most consumers against smart displays
                                                                                          • Figure 43: Interest in smart displays, January 2019
                                                                                      • Motivational Factors to Switch

                                                                                          • No requirement for a landline a key motivational driver to switch
                                                                                              • Figure 44: Features of a new provider, January 2019
                                                                                              • Figure 45: TURF Analysis – Features of new provider, January 2019
                                                                                              • Figure 46: Table – TURF Analysis – Switching factors, January 2019
                                                                                            • TURF analysis methodology
                                                                                            • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                • Abbreviations
                                                                                                  • Consumer research methodology
                                                                                                    • Market forecasts – Best/worst case scenarios
                                                                                                      • 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

                                                                                                  Bundled Communications Services - UK - March 2019

                                                                                                  US $2,552.20 (Excl.Tax)