This year, over 12 million UK households will take a bundle of three services from the same provider while a further 1.5 million will take four services from a single provider by the end of the year.
CCS Insight expects the number of households purchasing bundles of four services to double in 2016, and to grow steadily in the near future, helped by consolidation of the telecom market, such as BT’s proposed acquisition of EE.
Uptake of multiplay offerings is being driven by value, convenience and fewer bills as well as promotional activities, the rollout of new services, the emergence of new providers and a proliferation of no-contract options like Now TV, according to the research group.
CCS Insight says that adoption of fibre broadband will also help OTT services, which will pose a serious threat to telecom operators’ ambitions in video.
“Over 40% 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,” said Paolo Pescatore, director of multiplay and media at CCS Insight.
“We will see similar battles in other types of programming beyond sport, fuelling further competition. 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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