Do consumers buy into bundled services?
A little.
According to Park Associates, a market research and consulting firm, satisfied broadband subscribers say they are 9% less likely to switch compared to overall subscribers, and they are willing to pay $8 or about 10% more for bundled services. The results are from "Bundled Services & Residential Gateways," a primary consumer research study.
"Bundled services that maintain a high level of quality offer service providers, including cablecos, telcos, and other broadband providers, the opportunity to share an intimate relationship with their consumers," said Deepa Iyer, research analyst at Parks Associates. "It is through this relationship that service providers can build trust among consumers to become the one-stop shop for all their entertainment and communication services, and many subscribers will pay a premium for this high level of service."
At least that's the promise of double, triple, and even quad plays bouncing around. The survey results sound marginal to me. You don't make hundred million dollar investments to increase retention by 10%.
Bundled services from telcos and cablecos make for strong press. New services for voice, wireless, video, and music paint a pretty story.
But the truth is more grim. For the provider it's about survival. When the other guy is adding services and cutting into your business, you have little choice but to do the same. For the consumer it's more competition. And that's all good.
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