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Sixty-Five Percent of Internet Households Ready to
Switch to Bundled Services to Save $20 per Month
Cost currently trumps convenience for a majority of Internet
households; service provider challenge is to sell value beyond monthly
cost savings
Over 60% of all Internet households would be willing to consolidate
their services under a single provider if so doing saved $20 per month,
according to
Bundled Services: Analysis and Forecasts, a new industry report
from Parks Associates. This prospect of cost savings far outweighs
convenience as an influencing factor, for only 43% of these households
would switch to a video, telephone, and Internet bundle without a savings
incentive.
“Cost is important to subscribers, and at least some
savings must be a central theme of any successful campaign for bundled
services,” said
William Cheek,
an analyst with Parks Associates. “The challenge for service providers
will be to not to simply underprice their service packages in a
shortsighted attempt to stem churn and attract new customers. Instead,
they will need to define value to their customers that includes such
variables as the convenience of all services on one bill, one point of
contact for service issues, and value-added features and applications that
can be layered upon basic services.”
The study, based on an Internet survey of over 4,000
households conducted by Parks Associates, also found that 74% of
households likely to upgrade to broadband Internet in the next 12 months
would subscribe to a bundled service package that could save them $20 per
month for data, voice, and video services.
“This is encouraging for service providers,” Cheek
said. “As more households switch from narrowband to broadband, the number
of households with bundled services could increase almost in tandem,
provided that providers offer and adequately demonstrate the value – above
and beyond cost savings – of these options.”
Bundled Services: Analysis and Forecasts examines the market for
both three-tiered and four-tiered bundled service offerings from cable and
telecom service providers. The report, to be released in November,
profiles current bundled service subscribers, identifies households likely
to subscribe to a bundled service, and forecasts subscriber growth among
bundled service subscribers.
For more information about this study, please contact
Parks Associates at 972-490-1113 or
sales@parksassociates.com.
About Parks Associates: Parks Associates is an
internationally recognized market research and consulting company specializing
in emerging consumer technology products and services. Founded in 1986, Parks
Associates creates research capital for companies ranging from Fortune 500 to
small start-ups through market reports, primary studies, consumer research,
custom research, workshops, executive conferences, and annual service
subscriptions.
The company's expertise includes new media, digital
entertainment and gaming, home networks, Internet and television services,
digital health, mobile applications and services, consumer electronics, and home
control systems and security.
Each year, Parks Associates hosts executive thought
leadership conferences CONNECTIONS™, with support from the Consumer Electronics Association (CEA®), and CONNECTIONS™ Europe. In addition, Parks
Associates produces the online publication Industry Insights in
conjunction with the CONNECTIONS™ Conference series.
http://www.parksassociates.com |
http://www.connectionsconference.com |
http://www.connectionseurope.com
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http://www.connectionsindustryinsights.com
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