• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

One in Five Homes Bundles Internet or Phone With TV Service; Broadband Internet Access Drives Multiservice Subscriptions

Posted on: Friday, 3 November 2006, 12:00 CST

MENLO PARK, Calif., Nov. 3 /PRNewswire/ -- At a time when the race to provide bundled services to consumers is growing more intense, new findings from Knowledge Networks (KN) show that cable companies are leveraging their infrastructure and customer relationships to maintain a commanding lead over "telco's." Twenty-two percent of homes with television (TV) report having at least one telecommunications service bundled with their TV service; and almost all homes that have TV service bundled with Internet, telephone or cell phone services -- 90 percent -- are cable TV subscribers.

According to the recently released Spring 2006 Ownership and Trend Report from The Home Technology Monitor(TM), bundled services are driven by Internet access; 20% of TV households report having Internet service bundled with their TV service. Seven percent report telephone service bundled with TV service, and one percent report cell phone service bundled with TV service.

Broadband access is a major factor in driving multiservice subscription, with 48% of homes with high-speed Internet reporting bundling. Among broadband homes:

-- 47% report Internet service with TV service, -- 13% report telephone service with TV service, and -- 2% report cell phone service with TV service.

The initial roll-out of so-called "triple play" services (TV, Internet and telephone) to affluent, high-potential areas is reflected in the difference in adoption penetration between homes with an income greater than $50,000 (33% report bundled service) and those with income less than $50,000 (15%). Further, triple play penetration is significantly different between Caucasian homes (24%) and African-American or Hispanic homes (16%).

"When it comes to selling bundled services, cable providers have a tremendous head start on their competitors," said David Tice, Vice President of Client Service at Knowledge Networks/SRI and Director of The Home Technology Monitor(TM). "It may be some time before satellite and telephone companies can pry loose significant market share from the cable industry, which is gaining even more customers with 'triple-play' discounts. Through targeted competition and aggressively pursuing state-wide franchises, telco's can create competitive advantage by avoiding the costs of meeting town-by-town franchise demands and by marketing a consistent product set over a state-wide area."

The Home Technology Monitor(TM) is the definitive source of reliable insights into consumers' ownership, use, and response to media-related technologies, from broadband to DVRs to wireless Internet access. The program builds on two decades of research, combining top-quality nationwide surveys of technology ownership with special reports on key devices and services. These special reports are usually based on Knowledge Networks/SRI's exclusive How People Use(R) media methodology, a proven technique for studying the quality of media exposures

Knowledge Networks delivers quality you can use -- superior methodologies, design, and analysis that give you an edge when it comes to making smart, safe business decisions. KN's unmatched consumer research resources include the only projectable Web-based consumer panel. The company leverages its expertise in brands, media, advertising, and analytics to provide insights that speak directly to clients' most important marketing issues. In addition, Knowledge Networks has built a substantial practice in government and academic research, an area notable for its rigorous methodology standards.

In 2001, Knowledge Networks acquired assets and expertise from Statistical Research, creating Knowledge Networks/SRI. KN/SRI is one of the country's leading authorities on consumers' use and ownership of media and technology. The company is the leading measurement provider for Yellow Pages directories; other specialties include cross-media allocation (MultiMedia Mentor(TM)) and studies of consumers' interactions with media (How People Use(R) research).

Knowledge Networks

CONTACT: David Stanton, Vice President, Marketing Communications,+1-908-497-8040, or dstanton@knowledgenetworks.com

Web site: http://www.knowledgenetworks.com/

Source: PRNewswire

More News in this Category