CCS: Homes taking four products from one provider to double in 2016

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Quad-play - but can anyone make it pay?

Analyst house predicts multiplay services will continue to disrupt the market, with companies forced to make new alliances and acquisitions in order to compete 

The number of homes buying bundles of four services – mobile, fixed line, broadband and pay TV – will double in the UK next year.

This is according to a new multiplay services forecast by analyst house CCS Insight, with growth helped by consolidation in the telecoms market, such as BT’s proposed £12.5 billion acquisition of EE.

It is forecasting that within four year, 19.6 million households will buy bundles of three or four services, representing growth of 45 per cent, while the number buying bundles of four services will treble in 2018 from 2015.

CCS said that more than 12 million households will commit to a bundle of three services from the same provider this year, with a further 1.5 million taking a bundle of four services, with value, convenience and fewer bills the main drivers.

The analyst house is also forecasting that a substantial growth in the uptake of pay-TV services, driven by promotional activities, the roll-out of services, the emergence of new providers and proliferation of no-contract options like Now TV.

CCS Insight director of multiplay and medias Paolo Pescatore said: “Over 40 per cent of UK households currently do not subscribe to pay-TV services: this is a huge opportunity. BT has shown the way with the success of BT Sport. It’s now using its sport channels to drive up subscriptions to BT TV among its existing customers. It’s also targeting Sky TV customers who enjoy watching sports, while others like Virgin Media are positioning themselves as aggregators.”

In addition, CCS said “unique” offerings such as Lebara Play will provide further disruption and force established providers to continue innovating, while adoption of fibre broadband will help online video-on-demand services like Netflix and Amazon Prime Instant.

“We will see similar battles in other types of programming beyond sport, fuelling further competition,” added Pescatore. “We believe programmes, especially exclusive material, will be a key weapon in providers’ quest to secure customers. Those that offer a vast array of programmes will be better placed to succeed.”

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