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Build-Your-Own Bundle Builds Momentum Sick of traditional bundles that contain a mix of broadband, voice, TV and security? You're not alone. Operators' investments in high-speed broadband have spawned entire industries that leverage these capabilities to offer consumers an increasing array of options across all add-on categories. And despite attractive discounts, residential customers are using their wallets to vote for different services. New bundles -- such as fixed broadband and a smartphone or over-the-top services -- are becoming more popular among subscribers in the United States, finds Ovum Ltd. in Consumer Broadband Subscription and Revenue Forecast: 2017–22. These next-gen bundles will represent up to 25% of telco and cable company bundles by 2021, said Kamalini Ganguly, Ovum senior analyst for Broadband and Multiplay. "In the US, bundles have been evolving rapidly due to cable competition and innovation around the bundle," she added. "This trend will continue with elements such as fixed voice and pay TV de-emphasized in the bundle, and more mobile and OTT TV services included in multiplays." That's due, in part, to the allure of OTT and decreasing demand for fixed voice, the two most commonly dropped legacy bundle services. More than half (51%) of consumers cut pay TV due to costs; one third did so because everything they want to watch is available online or via free TV, the study found.
Pick Your Own Services
Bundles steadily lose popularity as consumers choose providers for services such as television programming and phone calls. (Source: Ovum Consumer Broadband Subscription and Revenue Forecast: 2017–22)
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— Alison Diana, Editor, UBB2020. Follow us on Twitter @UBB2020 or @alisoncdiana. (Home page image: Mayberry Health and Home) |
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