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Ziggo's share of triple-play market under pressure

Ziggo's share of triple-play market under pressure

Over 4.6 million Dutch households have triple-play subscriptions, taking three fixed services (broadband, TV, fixed telephony) from a single provider. Ziggo is the biggest player in the triple-play market, but its market share is under pressure, falling by 4 percent points over the past year. Consumers say the monthly costs are the most important reason to take a triple-play subscription, according to the research from Telecompaper. However, the reliability of the connection and the provider’s brand image are becoming more important.

A majority of Dutch households have triple-play (61%), equal to over 4.6 million households. Almost ten percent of them also have a mobile subscription from the same provider (quad-play). Triple-play is still increasing its share of the market; a year ago, its penetration was at 56% of households. Couples without children are one of the groups adopting triple-plays more, with 39 percent of households in this group having a triple-play in Q2 2015, up from 35 percent a year earlier. 

The figures come from the report ‘Triple Play Insights Q2 2015’ from Telecompaper, based on a survey of 10,000 Dutch consumers aged 12-80. The survey was conducted during the second quarter of 2015 by the Telecompaper Consumer Panel

The report shows that more than half of the triple-play customers get their three fixed services from Ziggo. However, Ziggo’s share is declining, losing four percentage points in the past year. In contrast, the second most popular triple-play provider in the Netherlands KPN added three percent points over the same period and now holds almost a quarter of the market. The smaller triple-play providers also showed some gains, including Caiway, Delta and XS4ALL.

The monthly costs are the most important reason for consumers to purchase a triple-play package; four out of ten mentioned this as a reason. The reliability of the connection comes an increasingly close second with 31 percent. Also the good name of the provider is mentioned more often in the top 5 reasons to purchase a triple-play package, suggesting aspects other than price are becoming more important to consumers as triple-plays become more common. 

The majority (80%) of subscribers said they don’t want to change anything about their triple-play subscriptions. Four percent would consider ending their fixed telephony subscription, in line with other data showing a decline in monthly use of the fixed line.

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