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Triple-Play Market ‘failing to reach potential’
28/07/08
The triple-play
(voice, Internet and pay TV) market is not reaching its full
potential. Content and branding issues are hampering operator
strategies to increase customer numbers, according to a new report
by Analysys Mason.
The report Multi-play services in Western Europe: market sizings and
forecasts 2008–2013 estimates that the number of Western European
households subscribing to a triple-play package is forecast to rise
to 31.1 million by the end of 2013, representing an average annual
increase of 17% since 2007.
The proportion
of households in Western Europe that will subscrie to a triple-play
service will increase from 7% to 18% between 2007 and 2013. Spend on
triple-play services will increase to EUR14.8 billion by 2013. This
growth in triple-play households will primarily be driven by the
continuing take-up of IPTV services and the upgrade of cable
networks.
“While the increase in triple-play household penetration is
promising, adoption is far from overwhelming,” says the report
author Richard Hadley. “This suggests that triple play, despite its
advertised benefits of lower prices and greater convenience, remains
a supplier-led proposition.”
“The take-up of triple play will be slower than expected for a
number of reasons, including a lack of compelling TV content from
telcos, difficulties in transferring telco brand attributes to the
TV content market, fixed–mobile substitution and, in some cases, a
legacy of poor customer service,” concludes Hadley. Adoption of
triple-play services in 2013 will be highest in the Netherlands (36%
of households), France (33%) and the UK (24%).
This report presents forecasts for multi-play services (triple-play,
double-play and single-play services) and includes data on
penetration and spend in Western Europe as a whole, and for UK,
France, Germany, Ireland, Italy, the Nordic region and Spain.
Nick Gibson, editor
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