Direct Save Telecom questions the timing of the You View launch by warning that more and more customers are turning their backs on expensive TV, phone and broadband triple play packages to seek out the best value individual deals available
The way we are viewing our home entertainment is evolving, with laptops, tablets and even the smartphone increasing our options and ending the monopoly the TV used to have.
Ofcom’s Communication Report (2012) states that over a third (37%) of UK adults with home internet watch online catch-up TV. The report also tells us that the average Brit spends around half their waking hours either in front of the TV, computer or their smartphone. However, as our demand increases our actual spend is going down from.
As more options come onto the market, many of us are now shopping around to find the best possible deals around. The double dip recession means the majority of us are feeling the pinch and looking to cut our outgoings, and premium TV channels are often the first thing to go.
So for the big players such as Sky or Virgin, who used to dominate the triple play market – combining an expensive TV package with phone and broadband – it is becoming increasingly difficult for them to keep their customers without reducing their prices.
This is the view taken by the experts at Direct Save Telecom, who have noticed a big shift in the market. They are finding many customers are switching off from the triple play option, and reducing costs by turning to Freeview and their £2.49 a month home phone and broadband deal.
Direct Save’s CEO, Stavros Tsolakis explains: “We have definitely noticed quite a shift in the market as people look to cut costs. There is a lot of downgrading going on with the TV market, as people switch to Freeview from Sky or Virgin. There is so much entertainment on offer just now that a lot of people simply do not need the premium channels they are paying for. So when they look to cut costs, this is the first thing to go.
“You can get so much from your laptop or tablet these days that not having a TV in your home is actually an option for people these days. This is what is strange about the timing of the You View launch, a lot of us simply do not have the money to buy a You View box costing between £200 and £300 when you can use your laptop or Freeview.
Tsolakis adds: “People are also switching on to the fact that triple play is not the way to go. As they are looking to cut their costs they are delving deeper into the eye catching headline deals that the likes of Sky and Virgin are offering and find out that at the end of the deal the prices escalates. So they are looking elsewhere to find the best deals, which greatly helps the likes of ourselves.
“Each day 20% of callers to our UK inbound telesales team ask for advice on getting Freeview or even how to downgrade their Sky or Virginmedia bundles to TV only packages.”
The ever changing entertainment landscape also means it is even becoming less uncommon for a household not to have a TV, and instead use their laptop or iPad to fulfil their viewing habits. Thus placing even more importance on having the right broadband package.
Juliet Chen, marketing manager at revolutionary shopping innovator Shopitize, adds: “I simply have no need for a television, as I can watch everything I want to on my laptop. The ecosystem is definitely evolving where we no longer need one device in the main room of the house, as we fulfil our entertainment needs elsewhere.
“A few years ago it would have been almost unthinkable for someone not to have a TV, but today I think it is not uncommon. Why pay for expensive premier channels when you do not need them? A good broadband connection and a high quality device now supplies everything you need, and at a much lower cost.”