Price, not content, wins
October 3, 2007
The mantra of the comms and technology industries has long been “content is king”. Yet for consumers choosing from a wide range of bundled telecommunications packages, price and convenience are still far more important than any content available.
This was one of the main findings of “Bundle Jungle Europe: Navigating the Multi-Play Market”, a survey of more than 12,000 consumers across eight Western European countries, released by leading professional services provider Ernst & Young. While fewer than 5 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 Vincent de La Bachelerie, Head of Ernst & Young’s Global 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.”