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New Ernst & Young report says content is not yet king

Price and convenience still sell bundled telecommunications services, rather than content, according to a new report from professional services firm Ernst & Young.

Bundle Jungle Europe: Navigating the Multi-Play Market, surveyed more than 12,000 consumers across eight Western European countries choosing from a wide range of bundled telecommunications packages (in which a single company provides two or more of broadband, fixed-line voice, television, and mobile phone services). And while fewer than five per cent of respondents cited premium content as a reason for taking up a bundle, up to 57 per cent of respondents by country cited cost.

“Content is currently low down on the list of reasons for consumers to take up or switch between ‘multi-play’ telecommunications packages,” explains Mark Gregory, Head of Ernst & Young’s UK Telecommunications Practice. “But content does create stickiness. If consumers have the content they want, it tends to act as the glue that keeps them with their current provider.”

As competition among companies offering bundled services continues to intensify, prices are dropping across the continent. As broadband and fixed-line voice services become commoditised and cheaper, content may become increasingly important. “The companies that succeed will be those that can segment their markets finely – tailoring services and content to the exact needs of their customers,” adds Gregory.

Bundle Jungle Europe: Navigating the Multi-Play Market, combined an online survey of more than 12,000 consumers in the UK, France, Spain, the Netherlands, Sweden, Finland, Germany, and Italy and interviews with senior executives from 30 telecommunications companies across Western Europe.