|
NEARLY 43 PERCENT
OF U.S. ONLINE HOUSEHOLDS SUBSCRIBE TO BUNDLED
COMMUNICATIONS AND ENTERTAINMENT SERVICES FROM
THE SAME PROVIDER, ACCORDING TO TELEPHIA
Price Breaks Drive
Adoption of Bundled Services more than Convenience
or Reliability
SAN FRANCISCO – September 5, 2006
Telephia, the largest provider of consumer research
to the communications and new media markets, reports
more than 31 million online homes or two out of
five online U.S. households subscribe to bundled
services from one provider. Bundled services can
include any combination of Internet, TV, phone,
and mobile phone subscriptions in a single package.
According to Telephia’s Total Communications
Survey for Q2 2006, double and triple-play bundles
were the most popular with consumers. The Internet/TV
bundle led all other service combinations with
nearly 13 million households, while more than
10 million households subscribed to an Internet/Phone
combination. More than five million households
subscribed to a triple-play service combination
of TV/Phone/Internet, while approximately 300,000
subscribed to quadruple-play bundles.
“Consumers gain a number of advantages from
subscribing to a bundled program, including cost-savings,
integrated billing, and a single point of contact
for services,” said Kanishka Agarwal, Vice
President of New Products, Telephia “The
key for service providers will be to develop pricing
and product offers for each segment that drive
bundling purchases and the long-term value of
the customer.”
Households Cite Price as the #1 Reason for Subscribing
to Bundled Services Price is the top reason why
households bundle, regardless of their bundle
type (see Table 1). Roughly one-third of households
subscribing to bundled services cite that convenience
was a strong factor in the decision to combine
their service subscriptions. Across all bundle
types, reliability of service was least important.
“While price is a key decision driver, bundle
purchasers are also looking for superior customer
experience and will not switch if they believe
the new provider has worse quality,” added
Agarwal. “This is why all the service providers
are working swiftly to build their reputation
for responsive and reliable support.”
|
