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Brits Ready to Bundle?
Bundled telecoms and entertainment services are big business in the US, but in their infancy in the UK. However, according to Continental Research's latest convergence report, the concept appeals to the great majority of UK consumers.
Bundled services can include any combination of Internet, TV, phone, and mobile phone subscriptions in a single package, and companies such as Sky, Orange and Carphone Warehouse are racing to sign-up customers with tempting offers such as 'free' broadband.
Continental, which says that just 15% of Brits are against the idea of bundling, believes it can help reduce churn among high spending customers. Currently 17% of mobile owners are likely to switch network in the next year. But, when asked how they would respond to free broadband for home Internet access as an incentive to stay with their current mobile provider, only 54% are still likely to switch network.
Associate Director James Myring believes that if companies can put together an attractive bundled package, then there will be significant consumer interest: 'TV companies are moving into telecoms services and fixed and mobile operators are moving into entertainment and broadband. Some are doing this organically, others by acquisition. What were previously distinct market sectors are now merging into one, with all players trying to leverage new services from their existing customer base.'
While bundled services are yet to take off in the UK, according to US digital research firm Telephia, two in five of US online households (31 million homes) already subscribe to them.
Continental's convergence reports are based on consumer data gathered from 1,000 face-to-face interviews and 1,300 online interviews and details can be found at www.continentalresearch.com . Telephia can be found online at www.telephia.com .
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