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ARCHIVE 2006
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Supplemental Value-added Services to Drive Revenue
Growth in Bundled Services
Study finds that appeal for additional broadband-enabled services
will add 16% to monthly triple-play revenues by 2010
The addition of incremental value-added services, such as TV-based
caller ID and home monitoring, to basic triple-play service bundles in the
U.S. will boost monthly revenue per subscriber to $206 by 2010, according
to Parks Associates’
The
Business of Bundled Services: Consumers, Models, and Uptake. By
definition, a bundle features any combination of landline voice, wireless
voice, high-speed Internet, or television from a single service provider.
Current revenue per subscriber from triple-play bundled services is $148
per month.
“The bundled services market is becoming increasingly crowded with
service providers, including cable MSOs and telcos, all offering similar
combinations to consumers,” said Deepa Iyer,
research analyst at Parks Associates. “At present, competitors are
struggling to differentiate beyond aggressive price cuts and catchy
promotions. At the same time, customers place a premium on specific
value-added services, so naturally broadband carriers are going to use
these features as key competitive differentiators.”
While the market for value-added television and high-speed Internet
services is in an early stage of development, such services will serve as
entry points for providers to create “consumer-centric” user experiences.
The
Business of Bundled Services: Consumers, Models, and Uptake finds
that 31% of broadband consumers intend to add TV-related value-added
services to their bundle. Furthermore, 41% of broadband consumers are
interested in adding supplementary services to their Internet
subscriptions as a part of their bundled service package. Parks Associates
estimates this interest will intensify in the next five years and these
supplemental services will generate $10.7 billion in revenues by 2010.

“An integrated set of services that match consumer interests can
transform the so-called commodity services – voice, high-speed data, and
TV – into enhanced user experiences,” Iyer
said. “While simple services like caller ID on a TV or a discounted
satellite radio subscription will start the transition to ‘My World’ user
experiences, enhanced value-adds such as home monitoring via the TV or
online storage backup solutions for consumer-generated content will
augment this new value proposition for consumers.”
The
Business of Bundled Services: Consumers, Models, and Uptake
analyzes the changing dynamics of the bundled services market. The report
offers insight into ideal service mixes, customer groups, and emerging
models for bundled services. It provides guidance to service and
value-added solutions providers to design and execute better market
strategies that maximize ARPU and increase customer retention. For
additional information about
The
Business of Bundled Services: Consumers, Models, and Uptake, visit
http://www.parksassociates.com
or contact 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™, in
partnership with 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 |
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http://www.connectionsindustryinsights.com
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