Research and Markets US Home Broadband Audience Expected to Double By 2009



April 15, 2005 -- Research and Markets (http://www.researchandmarkets.com/reports/c15662) has announced the addition of Merchandising Value-Added Services: Effectively Crafting and Marketing Premium Service Bundles to their offering.

The US home broadband audience will double from about 55 million individuals in 2004 to about 108 million by 2009. However, decreasing average access revenue and increasing competition will force providers to seek new revenue streams from value-added services.

Key questions the report answers:
-Are broadband consumers interested in premium value-added services from Broadband Service Providers (BSPs) today
-What audience segments are most willing to pay for premium BSP services
-Which types of premium services are likely to attract the greatest consumer demand
-How should BSPs market their premium offerings to prospective and existing access subscribers

This report, "Merchandising Value-Added Services: Effectively Crafting and Marketing Premium Service Bundles," tells us that U.S. broadband service providers must significantly improve the premium services they offer subscribers in 2005. Broadband services that fail to entice their customers to utilize premium features not only leave revenue on the table, but also risk creating a market ruled by harsh price competition.

The burgeoning broadband population has boosted the fortunes of cable and telephone companies, but competition between the two classes of firms is increasing as well. During the year 2004, broadband service providers differentiated their offerings in terms of price and speed.
However in 2005, these two factors will grow less meaningful, as telephone carriers will deploy faster broadband services and cable operators will offer cheaper broadband tiers.

This report found that premium service packages from broadband service providers can both differentiate broadband access offerings and generate ancillary revenues. In the consumer survey highlighted in the report, 47% of broadband consumers expressed a willingness to pay an additional monthly fee for bundles of entertainment or security services. Premium services include security features, like firewalls or anti-virus solutions, as well as entertainment services, like online games or music. Although some broadband service providers have offered such features in the past, they have only recently started to package these features into attractive bundles, and to market such bundles effectively to broadband subscribers.

The report above advises broadband service providers about specific features to prioritize, and offers tactics on how and to whom to market these services.

Contents contained inside this report include:
1. Benefits of Broadband Distribution Deals
2. Consumer Willingness to Pay for Security and Entertainment VAS Bundles
3. Overlap Between Consumers Willing to Pay for Security and Entertainment VAS Bundles
4. Methods Used by Consumers to Learn About ISP/BSP Offers
5. Primary Perceived Benefits of ISP Premium Bundles for Broadband and Dial-Up Users
6. Key Drivers for Consumer Adoption of BSP Premium VAS Bundles
7. Percentage of Online Consumers Who Value Premium BSP VAS Offers, by Age and Online Tenure
8. Marketing Tactics for Informing Consumers of VAS Offerings
9. Aspects of Utility and Entertainment VAS Bundles Likely to Affect Penetration

For more information visit http://www.researchandmarkets.com/reports/c15662

Laura Wood
Senior Manager
Research and Markets
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Research and Markets US Home Broadband Audience Expected to Double By 2009