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Multiplay Customers Half As Likely to Drop Digital TV Service
Despite Economy, Over 80% Won't Change Multiplay Spending
Boston, MA - July 23, 2009 – Households subscribing to two or more “multiplay” services are half as likely as unbundled consumers to drop their digital television service, according to research just published by Strategy Analytics. The report, “How Vulnerable is the Bundle? Economic Effects on US Residential Multiplay Spend,” examines the impact of the economy on consumer spend intentions, prioritization of individual bundle components, and bundling’s “insulating” effect.
Faced with the need to scale back household spending, unbundled pay digital television consumers were over two times more likely to drop their digital television service than bundled customers; 18% more bundled customers than unbundled would leave their digital television service unchanged. Unbundled broadband customers were also twice as likely as standalone or non-bundled customers to drop their service altogether.
Fixed telephone service, however, did not appear to benefit from the same protective effect of bundling, with roughly identical numbers of bundled and unbundled consumers saying they would drop the service completely.
“While bundling does have a certain “insulating” property against churn, it is by no means a panacea—nor does it apply evenly across the board for all services,” noted Ben Piper, analyst and Director of the Multiplay Market Dynamics service. When asked about spending intentions for the upcoming year, over 80% of respondents said they did not intend to make any dramatic changes, suggesting that the overall impact of the economy on consumer entertainment and communications spend has been minor..
"Multiplay services—and particularly broadband—have fared remarkably well over the past year, in spite of the troubled economy,” noted David Mercer, Vice-President of the Strategy Analytics Digital Consumer Practice. “Our survey findings indicate that these services are seen by many as indispensable.”.
The report is based on surveys fielded in June 2009, and gauges consumer attitudes towards their current economic situation, outlook for the future, past, current and future home entertainment and communications spend intentions, and prioritization of individual multiplay bundle components.
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