Biz:TV Service Providers - UK - October 2013.Whilst the pay TV sector is in a healthy position, providers will be under greater pressure to stay ahead of subscription-free products and services.
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TV Service Providers - UK - October 2013: Top Rated Research
1. TV Service Providers - UK October 2013
Whilst the pay TV sector is in a
healthy position, providers will be
under greater pressure to stay ahead
of subscription-free products and
services. Although pay TV providers
have so far seen off much of the
threat from free-view-view platforms, smart TVs and wireless
streaming services will arguably present an even greater
challenge in years to come. As these devices reach more people,
consumers will start to expect a strong on-demand platform as
standard, which could put a cap on the premium that companies
can charge for TV subscriptions.
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TABLE OF CONTENT
Introduction
Definition
Abbreviations
Executive Summary
The market
Volume
Figure 1: Forecast volume of pay TV subscribers, 2008-18
Value
2. Figure 2: Forecast value of pay TV
subscriptions, 2008-18
Market drivers
Providers focus on triple-play bundles
in order to improve retention
Figure 3: Take-up of bundled
communications services, 2005-13
A third of smart TV users
reconsidering pay TV subscription
Figure 4: Attitudes towards smart TV, 2013
Sports segment pushed on by BT cash injection
Figure 5: Multichannel spend (by broadcasters and service
providers) and subscription revenue, by genre, 2012
The consumer
Sky still leads the way as its focus changes to maximising
revenue from existing customers
Figure 6: Consumers’ subscription status and awareness of pay
TV service providers, August 2013
Freeview received by over two thirds of consumers
Figure 7: TV services have in the home, August 2013
‘Free’ BT Sport offers ensure early sign-ups
Figure 8: BT Sport subscription uptake, August 2013
On-demand is now in demand amongst pay TV subscribers
Figure 9: Attitudes towards pay TV services, August 2013
Almost half of non-subscribers could be tempted to sign up to
pay TV
Figure 10: Factors that could encourage non-subscribers to pay
for TV services, August 2013
What we think
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3. Issues in the Market
Will the improvement of subscriptionfree services limit the value of pay
TV?
How can BT use sport to win
customers from its rivals?
How can providers retain consumers
beyond initial contracts?
Are free-to-view services set to decline beyond 2013?
Trend Application
Trend: Nouveau Poor
Trend: Make it Mine
Mintel Futures: Access Anything, Anywhere
Market Drivers
Key points
Providers focus on triple-play bundles in order to improve
retention
Figure 11: Take-up of bundled communications services, 200513
Figure 12: Fixed broadband market share, 2007-12
Television has divorced from the TV
Figure 13: Sky Go app, shown on an iPad, launched 2011
(formerly known as Sky Player and Sky Mobile TV)
A third of smart TV users reconsidering pay TV subscription
Figure 14: Attitudes towards smart TV, 2013
Service bundling: should providers embrace competition?
Standard of TV programming alienating older consumers…
Figure 15: Opinion on programme standards over the last 12
months, by age, 2012
4. but watching television still the most
popular media activity by far
Figure 16: Which media activity would
UK adults miss the most 2005-12
Sports segment pushed on by BT cash
injection
Figure 17: Multichannel spend (by
broadcasters and service providers)
and subscription revenue, by genre,
2012
TV advertising revenue curbed by move to digital
Figure 18: Total TV advertising expenditure (all channels), JulyJune 2008/09-2012/13
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