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UK broadband, telephony and pay TV trends Q2 2018: Great volume, shame about the ARPU - Venture Insights

Report Overview

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UK broadband, telephony and pay TV trends Q2 2018: Great volume, shame about the ARPU

PublisherEnders Analysis.
Publish Date August 29, 2018
Sector Fixed Line (Internet and Voice), Media, Telecom, UK Media.
Company BT, SKY, TalkTalk, Virgin Media.

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The UK broadband subscription market re-accelerated in the June quarter, bucking a consistent downwards trend that has been established for over three years, with line rental and pay TV subscriptions also accelerating having both also experienced a more general downwards shift over the last few years.

The broadband acceleration may be short-lived, with line rental only a little more sustainable. Pay TV is perhaps the most robust recovery given that the over-the-top new entrants (primarily Netflix and Amazon) are now firmly establishing themselves as add-ons not substitutes.

Revenue growth however took a more familiar path, dipping to 1.6% from 2.8% in the previous quarter, as BT’s overlapping price increase predictably dropped out, partially mitigated by an improvement in ARPU growth at TalkTalk caused by an improved (i.e. slightly less damaging) mix effect.