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7.1% Subscribe to Triple Play Globally
Will Reach 25% by 2016 Generating $170 Billion
by Karl Bode Friday 29-Jul-2011 tags: Video · business · stats · consumers
According to a new report (pdf) from Digital TV Research, just 7.1% of worldwide customers subscribe to a triple play bundle of video, voice and phone. However, the firm notes that this total is set to soar to more than 25% by 2016, generating $170 billion in total triple play revenues that year. "The 2016 (triple play) penetration doesn’t sound too impressive until you realize that this represents 387 million homes, up from 96 million at end-2010," notes report author Simon Murray. The report also notes there will be 80 million double play (defined as TV and broadband) customers by 2016, up from 32 million at the end of 2010. While triple play bundles appeal to many, a significant number of subscribers are cell only and don't want a voice component, are lured away from traditional TV by Internet video, or may simply find better value by getting services from different providers.

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Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

Traditional triple play needs voice to migrate to cell servi

The traditional triple play of TV/Internet/Landline voice could really takeoff when cell service replaces landline voice as a standard part of triple play service.
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mix

join:2002-03-19
Utica, MI

I wonder...

I believe it is more likely in 2025 that people will be subscribing to an ISP which they use to access/route to themselves video, voice, and phone services.

FBGuy
yippee ki yay
Premium
join:2005-03-19

rip off

I've never seen the appeal of high priced bundles.
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·SONIC.NET
·RoadRunner Cable

Re: rip off

said by FBGuy:

I've never seen the appeal of high priced bundles.

They're not high-priced if you negotiate well, and if you're a family household with a home phone bill, dealing with one CableCo once a year is a lot less stress than jostling three accounts every month.

DarkLogix
Premium
join:2008-10-23
Baytown, TX
kudos:3

Re: rip off

"jostling"?
you pay your bills and move on its that simple, if something looks out of place you dig in and see why

with 3 co's you can end anyone of them at almost anytime to save money where as if they're bundled then it gets trickier
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·SONIC.NET
·RoadRunner Cable

Re: rip off

said by DarkLogix:

"jostling"?
you pay your bills and move on its that simple, if something looks out of place you dig in and see why

with 3 co's you can end anyone of them at almost anytime to save money where as if they're bundled then it gets trickier

Most people don't want to have to interrogate customer service at multiple companies each month, especially when they tend not to apply promised credits or properly correct the accounting.

With a single triple-pay bill, once properly negotiated for a year term, you don't have to do anything so long as the bill amount stays the same - and it does, at least, in our neck of the woods.

I guess you've never tried to correct bills with AT&T, Sprint, Verizon, Dish, DirecTV, or DSLExtreme. While I possess the skills, tenacity and diligence to see them through, I don't believe its reasonable to expect a consumer to wade through an hour or more every single month, across multiple bills, just to get the rates they were promised.

N3OGH
Yo Soy Col. "Bat" Guano
Premium
join:2003-11-11
Philly burbs
kudos:1
I'm coming to the end of a 2 year bundle with Verizon (Fios, TV & Phone).

So I get this letter in the mail that if I don't re up with them, my price will go up. I think I'm calling them and saying meh. Come take the boxes.

I never use the home phone. I use it so little that the battery went dead on my cordless (off the charging stand), and I never noticed.

I watch maybe 3 or 5 different channels. Found myself mostly watching the local news in the morning. I have line of sight to the HD antenna farm in Roxborough, so I can get that in HD with the HD tuners in my TV. If the sports game I want to watch isn't on, I just head out to the local pub anyway.

Between the HD, DVR, phone, and Internet they're hitting me for close to $160 a month.

I think I'll just keep the Internet, and get streaming Netflix on my PS3.

Laying out almost half a car payment for something I use so little is just a little ridiculous...
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Packerman

@rr.com

Re: rip off

Exactly. I had fios for a while and it worked I just never used it and I can't stand paying to watch commercials. So I cancelled the phone and tv and was stuck with a 15 5 connection for 60 dollars. I even started reconsidering this deal and cancelled for Time Warner which was offering 10 1 for 35 for a year. It handles pretty much everything I do and I don't mind waiting to download things a little slower.
Wilsdom

join:2009-08-06

Re: rip off

After a year you will be paying $60 for 10/1, though you might play with the CSRs to extend the "promotion". Not that saving money wasn't smart, but TW's lame upload speed pisses me off and I wish I had a fios alternative.

runnoft
Premium
join:2003-10-14
Deerfield, IL
kudos:1
Reviews:
·Comcast

Triple Play growing from 7% to 25% in five years??

I call bogus. Even Triple Play prices for home phone service are hundreds of dollars more per year than standalone VOIP which works quite well. And increasing numbers of people are willing to go with cell service and Internet service period. Who knows (I do not), maybe new and cheaper alternatives for phone service will become available in the next five years. I just don't see Digital Voice with Comcast (the only Triple Play option I have where I live) as a market that is likely to grow in this competitive environment.
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·Optimum Online
·Verizon FiOS

going down... ding..

expect the % to drop as triple play pricing goes higher in 2012 on average...

I don't think many would miss losing video in the triple play.... as that's potentially most costly product... internet and phone pricing mostly have remained stagnant (except wireless for 2012)
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·SONIC.NET
·RoadRunner Cable

Re: going down... ding..

said by tmc8080:

expect the % to drop as triple play pricing goes higher in 2012 on average...

I don't think many would miss losing video in the triple play.... as that's potentially most costly product... internet and phone pricing mostly have remained stagnant (except wireless for 2012)

Think again, outside the bubble.

Video is the most costly component - not that it has to be, we routinely negotiate $35 Big-B Basic-cable prices for a year, no triple-pay required. But it would be *sorely* missed in a majority of American households.

I personally don't get it - we've been TV-free for years, but the average husband would go bonkers without ESPN, and the Mrs. needs her Calgon channels where he's lost interest. I know that's a sad commentary on domestic bliss, but it describes the norm, not the exception - all the 20-years "happily" married couples I know.
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·Optimum Online
·Verizon FiOS

Re: going down... ding..

Yeah, the "LIMITED" use of basic cable by consumers (ie they watch about 6 channels out of 100-275) means that the paltry content could be streamed direct over the internet and supplant the block subscription model. One day, even those addicted to "live tv" (sports, news) will have options & alternatives available to them online with a wide variety of channels. All this for a fracion of the block channel business model. You also point out the generation gap here.. older people will be more willing to stick with the old cable-tv model, while younger people grown up on broadband will not-- and will be very price sensitive if they do.
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·SONIC.NET
·RoadRunner Cable

Re: going down... ding..

said by tmc8080:

Yeah, the "LIMITED" use of basic cable by consumers (ie they watch about 6 channels out of 100-275) means that the paltry content could be streamed direct over the internet and supplant the block subscription model. One day, even those addicted to "live tv" (sports, news) will have options & alternatives available to them online with a wide variety of channels. All this for a fracion of the block channel business model. You also point out the generation gap here.. older people will be more willing to stick with the old cable-tv model, while younger people grown up on broadband will not-- and will be very price sensitive if they do.

No argument here - OTT technology obviously can/could deliver a more efficient basic cable service with less overhead on a national basis. But I don't see it happening. The existing players don't have any incentive to go there.

The "younger" folks aren't so price-sensitive. Look at what they're willing to pay for "smart" phone service.
quatrix
Premium
join:2005-02-11
Davie, FL
kudos:2

Am I the only one paying attention?

"triple play bundle of video, voice and phone"

What's the difference between voice and phone?
Brisk

join:2003-07-11
Colorado Springs, CO

Re: Am I the only one paying attention?

^ The man has a point.
First thing I thought when I read the text. Karl?

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