Consumer Need for Leisure/Entertainment Service Presenting Much Needed Opportunities for MSOs and Telcos, Reports In-Stat/MDR.

SCOTTSDALE, Ariz. -- A recent In-Stat/MDR (http://www.instat.com) survey finds that a substantial number of consumers are currently subscribing to multiple leisure/entertainment services offered by their telecommunications providers. A report from the high-tech market research firm reveals that 31% of survey respondents indicated that they do purchase more than one service from a single provider. This indicates that currently two-thirds of the market continues to purchase each service they subscribe to from separate providers.

In this era of increased pricing pressure on consumer telecommunications and home entertainment services, the interest in increasing Average Per User Revenue (ARPU) is a priority for MSOs and telcos alike. "There is a large addressable market for bundled services and multiple service subscriptions present a flourishing opportunity for service providers to capitalize on this trend by introducing bundled services," said Amy Cravens, a senior analyst with In-Stat/MDR. "Bundled services allow a single provider to both take a greater percentage of a single household's service subscription budget, as well as increasing customer loyalty and retention by becoming a one-stop repository for most (or all) of the household's communication and home entertainment needs."

In-Stat/MDR also reports that:

--While the business case for bundled services is strong, adoption is still quite low.

--Of the survey respondents, nearly all subscribed to local phone and utility services, half indicated that they subscribed to an Internet service, and 20% indicated that they were subscribers to in-home entertainment services.

--Local phone and long distance were the most commonly bundled services, followed by local phone and Internet bundles.

--Those aged 35-44 and those with incomes of $100K or more are most likely to buy bundled services.

--The leading provider of bundled services amongst those surveyed is Verizon.

--Survey responses suggest that the message of cost savings that is being used to promote bundled services is either not reaching the entire target market, or it is not a deep enough savings.

The report, "Triple Play? Bundling Strategies in the US Residential Market" (#IN0401745IA), examines provider strategy, as well as consumer demand, for bundled services. From current rate of purchase to preferred bundle package, this report draws on consumer primary research to identify the demand for such offerings and potential means of making such services more competitive, given market demand. To purchase this report, or for more information, please visit: http://www.instat.com/catalog/pcatalogue.asp?id=95 or contact Courtney McEuen at 480-483-4454; [e-mail]. The report price is $3,495.

About In-Stat/MDR

In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end users.

In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier (www.reedelsevier.com), a world-leading publisher and information provider. With more than 38,000 employees worldwide, Reed Elsevier operates in the science & medical, legal, education and business-to-business industry sectors, providing high value and flexible information solutions to professional end users, with increasing emphasis on the Internet.