Bundle Madness 'Triple Play' unpopular, 'Quadruple Play' just absurd Tuesday Jun 13 2006 18:48 EDT If you listened solely to ISP press releases, you'd think that the triple-play bundle is all the rage, and that the majority of customers are lining up to pay one company $100+ for three or more services. In reality, most customers still prefer to grab one or two services, and frequently can net better bargains by shopping around for their third or fourth service - be that video, wireless, or VoIP. According to a Jupiter Research survey from March, only five percent of subscribers sign up for the triple-play, and only around a quarter of all customers are interested in nabbing all services from a single provider. "The assumption that everybody wants a bundle is flawed," a Jupiter analyst told the Washington Post last March. This week a new study by Pyramid Research claims most customers are interested in either one or two services. The study finds that "most telcos are selling 1 to 1.5 revenue generating units (RGUs, aka one service) per customer while cable companies perform slightly better, selling around 1.5 to 1.9 RGUs per customer" (thanks to cable deploying VoIP faster than telcos are deploying video). The report almost laughs at the idea of the "quadruple play." Occasionally you'll catch rare candid admissions by incumbents that customers aren't quite as keen on the triple-play as their press releases would lead you to believe. For example, Time Warner's CFO recently admitted that only 7% of his company's customers subscribe to three services, and the majority only purchased a single service. Whenever this topic is breached, there's a chicken and the egg debate here that springs up: are customers really saving significant money by bundling? Or are they being penalized for not bundling in environments where competitive choices are lacking? Comcast's stand-alone broadband service remains ridiculously expensive for someone who doesn't watch television. Similarly, stand-alone VOIP from Comcast costs a whopping $55. Bundling is, in part, an effort by providers to obfuscate the real price of services, clouding the consumer's ability to directly compare single-service prices. Once a customer has switched to a single-provider, they're frequently greeted by unexpected fees, and the cost-savings they expected are nowhere to be found. |
kv5eRide Free Premium Member join:2001-12-04 Mesquite, TX |
kv5e
Premium Member
2006-Jun-13 5:23 pm
PackagePut it an attractive enough container....and you can sell... | |
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Re: PackageI would like to have one with no contract | |
| | ub355 join:2005-09-15 Brookfield, WI |
to kv5e
Cable inc DVR Internet @ 5.0 mbps Phone unlimited long distance, caller ID, ect
All $99.00/ month fixed for 24 months no contract | |
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Bobcat79
Premium Member
2006-Jun-13 5:35 pm
My servicesHere are my services:
Video - Cablevision (no contract) Phone - Verizon (no contract) Internet - Verizon (no contract) Wireless - Verizon Wireless (no contract)
Note the lack of contracts. I can change any service at any time with no penalties.
Since Verizon and Verizon Wireless are basically separate companies, I'm getting four services from three companies. (The wireless service is not bundled with the other two Verizon services.) | |
| | spamd Premium Member join:2001-04-22 Cherry Valley, IL |
spamd
Premium Member
2006-Jun-13 6:05 pm
Re: My servicessaid by Bobcat79:Video - Cablevision (no contract) Phone - Verizon (no contract) Internet - Verizon (no contract) Wireless - Verizon Wireless (no contract) Note the lack of contracts. I can change any service at any time with no penalties. This will never happen. Big businesses starving for cash like contract/penalties terrorism. Or they will promise you no-strings attached (for 6mo.) then you will be locked in or pay up to $500.00 to breach your contract. Cell phone co., Sat. tv, AOL, NetZero all have charges if you discontinue service. | |
| | | roamer1sticking it out at you join:2001-03-24 Atlanta, GA |
Re: My servicessaid by spamd:AOL, NetZero all have charges if you discontinue service. Cell phone and satellite companies, yes...but dialup ISPs??? -SC | |
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Re: My servicesRead the fine print on the Netscape ISP ads, 12 month contract required. | |
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1 recommendation |
to spamd
As I said in my original post, I have no contracts for video, phone, Internet, or wireless services. I'm on month-to-month for all of them. There are no cancellation penalties. | |
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| JeffConnoisseur of leisurely things Premium Member join:2002-12-24 GMT -5 1 edit |
to Bobcat79
I'm with you.
Vonage (Voice) - No Contract Verizon Fios (Data) - No Contract Verizon Wireless (Cell) - year-to-year contract The Dish Network (Video) - no contract
Works out to be cheaper then if I did a Cablevision triple play, for example.
When FiosTV comes to me, that will be evaulated, but I have a feeling I might jump on that, which indeed, will make 3 out of my 4 services provided by Verizon. But, it's because I want that, not because of any deals offered. I'd rather pay seperately for 3 services I want and pay $15 more/month in total rather then [reluctantly] get a package deal for less money per month for services that I'm not all that thrilled with. | |
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FFH5 Premium Member join:2002-03-03 Tavistock NJ |
FFH5
Premium Member
2006-Jun-13 5:36 pm
2 piece bundles doing OKIf I am like many users, a 2 piece bundle is pretty standard. I get internet and video from cable in a pkg. And I get land line and cell phone access from a telco. Both have discounted bundled packages. But I don't see any special deals out there that would make me want to combine all 4 into 1 pkg.
Comcast offered to add their CDV for $33/mo for only a year(going to $40 at end of 1 yr), but that is no discount at all off what I am paying as part of a landline/cell pkg from the telco.
Besides, by keeping 1 foot in each camp(telco,cable), I can leverage them against each other when angling for a better deal on the 2 way pkgs. | |
| | Pz_ join:2001-03-31 Brownsburg, IN |
Pz_
Member
2006-Jun-13 5:41 pm
Re: 2 piece bundles doing OKI have internet and CATV from Comcast, even though I don't use the TV part. I have DTV for television. However, the penalty for having internet without cable tv is $2.00 more per month than the basic cable offering.
So yeah, I guess I have a bundle, even though I don't want/use it. | |
| | | Netbum join:2002-04-08 Oakley, CA |
Netbum
Member
2006-Jun-13 8:11 pm
Re: 2 piece bundles doing OKsaid by Pz_:I have internet and CATV from Comcast, even though I don't use the TV part. I have DTV for television. However, the penalty for having internet without cable tv is $2.00 more per month than the basic cable offering. So yeah, I guess I have a bundle, even though I don't want/use it. Same exact scenario for me. Although...cable Internet is straining the budget abit..well at least the WAF | |
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POBRes Firma Mitescere Nescit Premium Member join:2003-02-13 Stepford, CA |
POB
Premium Member
2006-Jun-13 5:38 pm
Therein Lies the RubBundling is, in part, an effort by providers to obfuscate the real price of services, clouding the consumer's ability to directly compare single-service prices. Once a customer has switched to a single-provider, they're frequently greeted by unexpected fees, and the cost-savings they expected are nowhere to be found. If more consumers were aware of this bait-and-switch tactic, the sum total of one of P.T. Barnum's own would not be quite so high as it currently is. But since Internet content is headed the way of cable thanks to gullible, weak minded sheep who believe the telcos, consumers better get used to getting shafted in yet another financial orifice. | |
| roamer1sticking it out at you join:2001-03-24 Atlanta, GA |
Wireless bundles don't make senseBundles of services for the home (home phone service whether POTS or VoIP, Internet, video) make sense, but to me, bundling wireless and other outside-the-home services doesn't make much sense, given that most people's choice of wireless carriers is driven by coverage, phones, and whether friends/family are on the same carrier, *not* strictly price.
-SC | |
| The BeerI Love It When A Plan Comes Together Premium Member join:2001-07-24 Lincoln, NE |
The Beer
Premium Member
2006-Jun-13 7:00 pm
Strange....No really I can't see how the triple play is not a win-win.
I WOULD SAVE MONEY with a bundle however I only have separate services because of stupidity at Qwest.
Qwest will not let you bundle DirecTV and stand alone DSL, and they will not let you have Static IP's with the DSL they offer in the bundle.
Yes the bundle would save me money, and I still have my services with Qwest, the idiots just will not bundle the advanced feature set. | |
| oliphantI Have 8 Boobies Premium Member join:2004-11-26 Corona, CA
1 recommendation |
oliphant
Premium Member
2006-Jun-13 7:08 pm
Not cheap enough...People aren't interested because it's often not a good deal. There is typically once service that's a rip. One that comes to mind is often cable or telco branded VOIP which is often 300% the price of some budget competitors. $5 off ain't gonna do it. | |
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I do not get it.I really do not get what is the issue is concerning bundling. Simple take the price of each individual compnent of the bundle add them together and compare to the bundle price then take the right action. I do not think people are that stupid. Then again, these people are the product of our public education system. A school system that is more concern with political correctness teaching math. | |
| tsu9 join:2001-08-17 Wheeling, IL |
tsu9
Member
2006-Jun-13 7:52 pm
New theoryNew theory: People like paying less money for more things. | |
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Re: New theoryI read somewhere, and I agree somewhat, that in large part it's "psychological": it appears to be easier to pay three or four $40-70 bills than one $200-300 bill. | |
| | | envoid join:2002-12-21 Duluth, GA |
envoid
Member
2006-Jun-14 11:45 am
Re: New theoryI would have to agree. Its easier to pay the $40-$70 when making $300 a week compared to dropping a whole paycheck to the bundled price. | |
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How is this bad?(double play)I have tv and internet cable and I save ten dollars a month. I cant see why thats bad -- or confusing. | |
| | SDKiwi join:2002-05-27 El Cajon, CA |
SDKiwi
Member
2006-Jun-13 9:12 pm
Re: How is this bad?(double play)said by Dagda1175:I have tv and internet cable and I save ten dollars a month. I cant see why thats bad -- or confusing. Despite the theme (and selected stats to support the claim) of this article, many customers have the same reaction and do indeed bundle up...but only if ISP service is good. | |
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I like my bundleI like the Rogers Bundle i Have its 15% of what ever you are paying and at this time I am normally saving 30 to 45 dollars a month witch is a good deal. Also They own a publishing company So I get 2 issues of Canadian Business a month bundled in my package for $1.00.
So far I have Digital Cable, HSI, And Wireless. I will sign up for Home Phone when I can get it possibly Long distance if they can beat the Deal I have now. | |
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Re: I like my bundleI save something over $60 a month with Rogers bundling, and that's with three services. Why would I need home phone when I have a cell? | |
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Re: I like my bundleI do a lot of LD and its not cost effective with my Cell phone. Also I am not the Only one that lives in my home and we do not all have cell phones. | |
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needforspeed59Cruise Ship Just Passing Through join:2001-05-02 La Place, LA |
Cox Sez More Than Half of Customers BundleThis article says just the opposite. "NEW YORK (Reuters) - Cox Communications, the third-largest U.S. cable operator, said on Tuesday said its combination package of video, voice and high-speed Internet services had helped it post record first-quarter subscriber growth and continued reduction in customer defections. Cox, which became a private company in December 2004, said its latest figures show that more than half of its 5.9 million customers subscribe to two or more of its services. More than a million households have subscribed to all three products as a bundle...." The article conitnues at » today.reuters.com/busine ··· X-DC.XML | |
| ssj4androidRedefining Reality join:2002-04-14 Wyoming, MI |
Quadruple Play?Who's playing, The Flash? | |
| madylarianThe curmudgeonly Premium Member join:2002-01-03 Parkville, MD |
Bundling....big dealI don't understand why bundling of services by broadband providers is such a hot button issue. It's not as if bundling of services is new. It's been around for ages in lots of areas. We get a discount on our car insurance by bundling it with our home owner's policy. We've been getting a discount on premium channels by buying more than one for more than 20 years. We got a discount on new doors by getting them at the same time we got the new windows. And it's long been the case with the different services from the phone company. Big whoop.
On the other hand, I would no more get ALL of my communication services from one company than I would put all my money in one bank.
mady | |
| | scottwn join:2004-06-07 Birmingham, AL |
Re: Bundling....big dealHere's what I have: Voice - Packet8 ($24.18) Cell - Sprint ($40.09) TV - Dish Network ($78) Data - ACD.net ($48.20)
No one in my area even offers triple play since Comcast doesn't offer VoIP here yet and AT&T doesn't do video. I don't think I'd ever be interested in a triple or quadruple play offering. | |
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I have the triple play$131 a month.
Internet 5/1 DVR 300 channels and nothing on and DVR Phone (not VoIP) but dial tone over coax.
Sort of cool, the caller ID on TV is very cool | |
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