Markets

Juniper Research^[2] predicted that the number of subscriptions is set to rocket to more than 4.2 billion by 2026 generating some $600 billion in revenue. This was swiftly followed by a report by Omdia^[1] which revealed that 20% of all streaming video subscriptions are now sold through bundling partnerships with telcos with this number expected to grow to a quarter (25%) by 2028.

Analysts concluded that this growth in bundling was being driven by telcos’ long-term strategic desire to expand beyond their core data and voice services as they look to increase subscribers and reduce churn — a recurring theme that was picked up most recently in the StreamTV report mentioned earlier. It also, perhaps, reflects that ARPU (average revenue per user) for many telcos is flat or even declining.

In the USA, for example, Verizon has been making waves with its +play platform which brings together Netflix, Disney+, HBO Max, Paramount+ and more. Similarly, in Australia, Optus has launched SubHub, providing flexible access to dozens of streaming services and subscriptions.

• 52% of US subscription users are frustrated they can’t manage their subscriptions in one place
• 78% want a single platform to manage all their subscriptions
• 77% want to pay for multiple subscriptions via one monthly bill

Data source: Bango data, 2023 ^[3]

Subscribers are hungry for content, at the same time they’re overwhelmed by the volume and fragmentation of digital subscription services.

Seven in ten (72%) consumers said there were too many subscription services available. However, far from calling for choice to be limited, they simply wanted an easier way to manage and pay for all their subscriptions. More than three-quarters (78%) said they wanted a single hub. And with that unified subscriptions hub, they would buy more subscriptions.

Super Bundling gives consumers access to huge and varied content, all available on a single platform via a single bill. Crucially Super Bundling gives consumers much more control over their subscription services allowing them to sign up, pause, resume and channel subscriptions all in one place.

By enabling all-in-one subscription platforms, Super Bundling has proven itself to be a powerful way to provide consumers with:

• Flexibility: Control over apps, subscriptions and bills
• Transparency: Visibility into subscriptions and bills
• Centralization: An easy way to connect multiple content providers into one hub (and for content providers to access new audiences)

Over-the-top (OTT) media services are internet-based services that enable consumers to stream video and audio content to any device, without the need for a satellite or cable tv subscription. Examples of OTT media services are Netflix, Amazon Prime, Disney+ and Spotify. In recent years, the growth of these services has been huge. Since 2010, revenue has grown by over 1,700% from $6.1B to $106B and is expected to grow further reaching $129B in 2021 and $210B by 2026. ^[4]

However, as more and more services emerge, the fight for customer attention and customer spend increases. Between November 2019 and Jan 2021, a multitude of new services were released including; Britbox UK, Disney+, Apple TV+, HBO Max, Peacock and Discovery+.

The COVID-19 pandemic boosted demand for OTT content. However, the difficulty facing OTT service providers is in how to sustain the impressive growth figures they have been achieving.

The answer pointed to by several researchers, including Ampere and Omdia, is Bundling. By integrating with telcos and PayTV providers, these subscription platforms gain access to a much larger pool of customers.

We’ve also seen physical retailers doing the same. Large, national chains, keen to increase their engagement with customers, are encouraging purchases via their own store cards by offering rewards, including bundled subscriptions.