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13 Percent Quad Play Service Penetration by 2016

Quad Play Subscribers Less Likely to Churn

Boston, MA - August 2, 2011 –  By 2016, thirteen percent of US households will take a “Quad Play” service—a bundled offering of fixed voice, broadband, television and mobile voice—from the same provider in 2016, according to a report just published by Strategy Analytics.  This represents a four-fold increase compared to 2011 levels.

Today, 57 percent of American households are classified as “multiplay,” meaning that they take more than one entertainment or communication service from the same provider.  This makes the US one of the most highly bundled countries in the world.  According to this report, while the Quad Play will make strides in the US market over the next five years, the voice-video-data “Triple Play” will be the dominant bundle type.

“Quad Play bundling has had a slow start in the US, but we see increased momentum over the next five years,” said Ben Piper, Director of the Multiplay Market Dynamics service and author of the report. “Survey research we have just fielded shows that US Quad Play subscribers have a much higher ‘value for money’ perception, and are significantly less likely to churn.”

AT&T reports that more than 75 percent of its U-verse TV subscribers receive the service as part of a Triple Play or Quad Play offering. Additionally, the Triple Play ARPU has increased over 8 percent year over year to $170.

Beyond the United States, Strategy Analytics sees high growth opportunities for multiplay bundling in Austria, Italy, and China, each expected to double the percentage of multiplay homes by 2016.

The report, “Multiplay Services Forecast,” provides analysis and subscriber forecasts (2010-2016) for Double Play, Triple and Quad Play services in ten countries, including Austria, France, Germany, Italy, Netherlands, Spain, UK, China, Japan and the US.

Analyst Blog: http://blogs.strategyanalytics.com/MMD/


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