Consumers are Increasingly Likely to be in "Bundles"
Cable TV Subscribers in Bundles are Less Likely to Switch
Durham, NH – April 24, 2006 – New consumer research from Leichtman Research Group, Inc. (LRG) finds that 43% of consumers say that they live in a household that currently receives a “bundle” of TV, phone or Internet services from a single company. This is an increase from last year when 33% of households received more than one service from a single provider.
In addition, cable subscribers who receive a bundle of services are less likely to switch from cable TV service than those who receive just a single service from their cable provider. Overall, 7% of cable subscribers receiving bundled services from their cable operator are likely to switch from cable TV in the next six months – compared to 12% of cable subscribers who do not receive bundled services.
These findings are based on a telephone survey of 1,600 randomly selected households from throughout the United States and are part of a new LRG study, Cable and DBS: Competing for Customers 2006. This is LRG’s fourth annual study of this topic.
Other key findings include:
- 58% of those with annual household incomes over $75,000 currently receive a bundle of services from one company – compared to 34% of those with incomes below $50,000
- 47% of individuals age 18-54 receive a bundle of services from one company – compared to 32% of those age 55 and above
- 88% of cable Internet subscribers also get cable TV service, while only 48% of DSL subscribers (in areas where cable is available) subscribe to cable TV service
“The combination of TV, high-speed Internet and telephone services is becoming increasingly important for both providers and consumers,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. “Those who are most likely to receive bundled services tend to be younger and wealthier than average. And as importantly, bundles appear to be providing the desired 'stickiness' for operators.”
About Leichtman Research Group, Inc.
Leichtman Research Group, Inc. (LRG) specializes in research and analysis on broadband, media and entertainment industries. LRG combines on-going surveys and analysis with years of hands-on industry experience to provide companies with a richer understanding of the potential impact and adoption of new products and services. For more information about LRG, please call (603) 397-5400 or visit www.LeichtmanResearch.com.
Cable & DBS: Competing for Customers 2006 is based on a telephone survey of 1,600 adults age 18+ from throughout the continental US that was conducted in March 2006. The random sample of respondents was distributed to best reflect the demographic and geographic make-up of the US. The overall sample has a statistical margin of error of +/- 2.5%.
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