Saturday, December 31, 2016

Why Mobile Video Might be So Important

Most U.K. consumers now buy at least parts of a bundle of services (internet access, voice, video, mobile), EY study found. Some 93 percent of U.K. broadband households now have some form of bundle, EY found. That same study also found that TV and mobile bundles score best in terms of satisfaction and loyalty.

That is an indicator of why Verizon, focusing more on becoming a mobile advertising platform for video services and app, and AT&T, which is more intent on becoming a force in mobile content delivery, are working on mobile content delivery systems. If the U.K. preferences wind up being seen in the U.S. market, then the “best possible” bundle will be video entertainment plus mobile service.

At the moment, the most-popular U.S. bundle likely is “internet access plus TV.” That is a preference parallel to “mobile plus TV,” with one twist. Where the most-popular fixed network bundle arguably is TV-and-internet, the most-popular mobile package could naturally become “mobile voice, mobile internet, mobile video,” for the simple reason that buying mobile internet access always comes with voice and messaging included.

In that sense, the “natural” mobile bundle is going to be “bigger” than the natural fixed line bundle, simply because purchasing mobile video will assume the presence of mobile internet access, which in turn presumes the customer also gets voice and messaging (the services are stacked upon each other).

That natural bundle also shows why mobility platforms might become even more powerful: they are the ultimate platform for bundling all ubiquitous consumer communications services and most ubiquitous apps.

The other study finding that reinforces all thinking about bundles is that 55 percent of consumers would buy a bundle “only” if it also represents a price discount. That is logical. Consumers and suppliers are used to the notion of volume discounts.

source: EY

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