Report Confirms Importance of Triple-Play Bundles

The triple-play bundle plays an important role in the success of services penetration and its impact is accelerating, according to market research firm Digital TV Research. Findings from their most recent research on bundling found that triple-play subscriptions will reach 400 million globally by 2017, an increase of nearly 300 million from year-end 2011, and 380 million higher than 2007.

This research also points to the important role that triple play bundles play in the penetration of video services. "The number of triple-play households will overtake the standalone TV total in 2013. The standalone TV total will begin to decline from 2016 as homes convert to bundles," says the report's author Simon Murray. "So 61% of cable and DSL/fiber TV subscribers will pay for triple-play bundles by 2017, up from 38% in 2011 and only 21% in 2007," he continued. "By way of comparison, the standalone TV proportion will fall from 63% in 2007 and 49% by end-2011 to only 27% by 2017."

Examining competing triple-play service providers, cable will still account for nearly 2/3 of subscribers by 2017, according to Digital TV's forecast. However, triple-play penetration will remain higher in DSL and fiber homes (81% by 2017) than in cable homes (54%), the market research firm reports.

In terms of revenues, triple-play subscriptions will produce $149 billion by 2017, Digital TV Research forecasts. At $59 billion, the U.S. market will account for 40% of the global total, followed by Japan at $13 billion, China at $12 billion and Canada at $10 billion. The U.S. market will provide $32 billion of the overall $93 billion increase between 2011 and 2017, with Japan and China each adding another $10 billion.

For research purposes, Digital TV Research defines a triple-play bundle as homes subscribing to TV, broadband and fixed telephony services. The firm's figures include cable, DSL and fiber network operators, but exclude satellite TV providers that offer double and triple-play subscription service bundles.

CHR Solutions clients have had significant success with bundling. This research validates this success in the marketplace and reinforces strategies that include bundling for the long term.

Written by Kevin Kutcher at 12:00

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