Multiplay Bundles Growing in the UK

According to Strategy Analytics, UK service providers will benefit from consolidation and multiplay strategies in the coming years, with bundled ...

Linear TV still dominates video ad spending
Linear TV still dominates video ad spending

According to Strategy Analytics, UK service providers will benefit from consolidation and multiplay strategies in the coming years, with bundled subscriptions growing by 20%. From 2015 to 2020, quad-play revenues are expected to triple, while total multiplay market revenues are expected to grow by 34%. Double-play subscriptions are expected to peak in 2016 and begin to decline as customers move to triple- and quad-play bundles. By 2020, quad-play is expected to account for more than 21% of bundled subscriptions in the UK.

The research house says the converged services market in the United Kingdom is experiencing growth as operators have positioned for bundled service offerings. BT, Sky, TalkTalk, Virgin Media and Vodafone are all competing to gain a foothold.

"Multiplay bundled services are rapidly gaining ground in the UK as more players have entered this space through expansion and acquisition," said Jason Blackwell, director of the Service Provider Strategies service (SPS) at Strategy Analytics. "BT's acquisition of EE has positioned the company very well, enabling cross-selling of services and giving BT a strong network with fiber and 4G. Based on its strategies in the Netherlands and New Zealand, Vodafone may need to revisit the opportunities for partnerships in the UK."

Discussing pricing, Blackwell added, "Competition in the UK market is already intense, and we expect to see price discounts in the form of long term introductory offers and through multi-service purchase, as operators try to take customers from competitors. However, the successful operators will avoid a race to the bottom and hold overall pricing by upselling customers to faster broadband speeds, premium TV channels and larger mobile broadband buckets."

Josie Sephton, from Strategy Analytics' pricing and benchmarking division, Teligen, added, "Part of this upsell involves encouraging customers to move from double- or triple-play to quad and even five-play bundles, as providers aim to keep customers close by providing a one-stop shop - and this is something we can expect to see much more of in the future."

More in Video