Quadruple-Play Bundling Strategies

• How successful are existing quadruple-play bundles?
• When is quadruple play appropriate and when is it not?
• Which market segments are the best to target with a quadruple-play offering?
• How can a quadruple-play package be marketed successfully?
• What potential is there for revenue growth in the residential market?
• How can quadruple play be used to generate new revenue?

0 Summary

1 Multi-play strategies are a response to convergence

1.1 A multi-play package markets telecoms and entertainment together as a single product that aims to be greater than the sum of its parts

1.2 Families have limited budgets, of which multi-play packages aim to take an increased share

1.3 Some elements of multi-play packages are targeted towards families, while others are aimed towards individuals

1.4 Telecoms and media players approach the multi-play market with different strengths

2 Adding video to a telecoms portfolio is more difficult than adding telephony to a TV package

2.1 Pay-TV players own popular TV content, and can easily buy voice minutes

2.2 Fixed telecoms operators have to contend with a steep learning curve when launching video services

2.3 Mobile operators aim to eliminate the fixed telco from the home

3 Selected country profiles

3.1 Australia’s incumbent continues to dominate the country’s market

3.2 Bundled services are at the forefront of Austrian operators’ strategies

3.3 Fixed-line penetration has halved in five years in the Czech Republic

3.4 France has a particularly strong triple-play market

3.5 Operators in Hong Kong are pioneering IPTV and ultra-fast broadband services

3.6 Competition in Sweden has focused on speed rather than bundles

3.7 The UK has the highest pay-TV ARPU in Europe

3.8 US incumbents are planning ambitious fibre deployments

3.9 Other countries that have, or will soon have, quadruple-play bundles

4 The five key lessons for building a successful quadruple-play strategy

4.1 Triple-play bundles work, but quadruple-play packages are not yet proven

4.2 Quadruple-play bundles are about survival in the short term and positioning for the long term

4.3 Not all markets are ready for a quadruple-play package

4.4 Quadruple-play bundles are a commercial imperative in the long term

4.5 Quadruple-play packages are not easy to develop or market

Actions

Figures and tables

Figure 1.1: Elements of a quadruple-play bundle

Figure 1.2: The benefits of a multi-play bundle

Figure 1.3: Share of family expenditure on telecoms and media in the UK, 1999-2005

Figure 1.4: Share of family expenditure on telecoms and media in Italy, 2001-4

Figure 1.5: Share of family expenditure on telecoms and media in France, 1999-2004

Figure 1.6: Different players’ abilities to deliver the elements of a quadruple-play bundle

Table 2.1: Multi-play SWOT analysis for cable and satellite operators

Figure 2.1: Revenue generated from popular and long-tail content

Table 2.2: Multi-play SWOT analysis for incumbents

Table 2.3: Multi-play SWOT analysis for new fibre operators and unbundlers

Table 2.4: Multi-play SWOT analysis for mobile operators

Table 3.1: Services offered by the primary telecoms operators in Australia

Table 3.2: Selected multi-play offers in Australia

Figure 3.1: Timeline of broadband bundles in Australia

Table 3.3: Services offered by the primary telecoms operators in Austria

Figure 3.2: Timeline of broadband bundles in Austria

Table 3.4: Selected multi-play offers in Austria

Table 3.5: Services offered by the primary telecoms operators in the Czech Republic

Figure 3.3: Timeline of broadband bundles in the Czech Republic

Table 3.6: Selected multi-play offers in the Czech Republic

Table 3.7: Services offered by the primary telecoms operators in France

Figure 3.4: Timeline of broadband bundles in France

Table 3.8: Selected multi-play offers in France

Table 3.9: Services offered by the primary telecoms operators in Hong Kong

Figure 3.5: Timeline of broadband bundles in Hong Kong

Table 3.10: Selected multi-play offers in Hong Kong

Table 3.11: Services offered by the primary telecoms operators in Sweden

Figure 3.6: Timeline of broadband bundles in Sweden

Table 3.12: Selected multi-play offers in Sweden

Table 3.13: Services offered by the primary telecoms operators in the UK

Figure 3.7: Timeline of broadband bundles in the UK

Table 3.14: Selected multi-play offers in the UK

Table 3.15: Services offered by the primary telecoms operators in the USA

Figure 3.8: Timeline of broadband bundles in the USA

Table 3.16: Selected multi-play offers in the USA