The traditional triple-play bundle dropped to less than half the nearly 7 million multi-play subscribers in the Netherlands in the second quarter, as more consumers turn to dual- and quad-play bundles.
Overall growth in the multi-play market slowed to just 4,000 subscribers added in Q2, but revenues grew at a stronger rate, thanks to more customers opting for the more expensive quad-play and fixed-mobile packages, according to the latest Dutch Consumer Multiplay Market report from Telecompaper.
The triple-play or ‘All-in-1’ package has long been the most popular bundle in the Dutch market. However, more and more consumers are turning to quad-plays, driven by increased marketing of the offers by VodafoneZiggo and T-Mobile. The triple-play fell to 48.9 percent of multi-play households in Q2, down nearly 3 percent points from a year earlier, while quad-play increased its market share 2.3 points over the same period to 27.3 percent.
The latest report from Telecompaper also provides new data on the growing popularity of fixed-mobile converged (FMC) bundles in the Dutch market. Customers taking both fixed and mobile services in a bundle grew to nearly 40 percent of the multiplay market in Q2, after 150,000 new FMC subscribers were added in the quarter and over 400,000 in the past year. Of the over 2.7 million FMC subscribers, just under 70 percent are on a quad-play bundle, while a growing share (23%) take a bundle of broadband, mobile and TV.
VodafoneZiggo led the growth in the FMC market in Q2, adding nearly 100,000 subscribers in the three months. This contributed an even higher number of Sims for the operator – 158,000 – as FMC households add multiple mobile plans to take advantage of the discounts offered.
The shift to FMC, including quad-play and multiple mobile subscriptions, is helping sustain revenue growth in the multi-play market, despite the slower overall subscriber growth. Total multi-play revenues increased 4.5 percent year-on-year to EUR 1.2 billion. Quad-play revenues accounted for 37.5 percent of revenues, overtaking the traditional triple-play with 34.6 percent.
“Dutch telecom operators are able to sustain revenue growth in a saturated market thanks to the increased focus on quad-plays and FMC plans,” said Kamiel Albrecht, Telecompaper research analyst and co-author of the Multiplay Market report.
“There is more potential for growth through adding additional Sims to bundles, whether it be a quad-play or the increasingly popular 3P alternative of broadband, TV and mobile.”