20% of streaming subscriptions delivered through telco bundling in 2023
09 Agosto 2023 - 7:00AM
20% of all streaming video subscriptions are now sold through
bundling partnerships with telco companies, reaching 25% by 2028.
In certain regions such as Latin America, close to 50% of streaming
video subscriptions will come from telco bundles within the next 5
years.
Global revenue from video, music and other subscription-based
services sold via telcos will total $24.8bn this year and grow to
$42.8bn in 2027.
That’s according to a new analyst-led report ‘Super Bundling:
What Telco Leadership Needs to Know About Securing a Wider Role in
the Subscriptions Market’, released today by Omdia and Bango.
Tapping the streaming market
The report finds that the global subscription streaming market
is maintaining its upward trajectory. By bundling streaming
subscriptions with their core offerings, Omdia suggests that telcos
can position themselves at the centre of this high-growth,
high-value market. Earlier this year, Juniper Research similarly
found the market is expected to grow by a sizable $268 billion
within the next 3 years alone.
A recent Bango survey indicates that telco leaders are already
recognising the market potential themselves, with 71% seeing major
gains in customer acquisition and retention from incorporating
streaming bundles into their offerings. Streaming video on-demand
(SVOD) subscriptions now rank as the number one bundle for telcos
looking to boost acquisition and retention.
The quid pro quo of streaming bundles is apparent: while telcos
retain and gain customers, content providers tap new audiences. At
the end of March, Omdia identified over 1,600 partnerships in
existence between telco companies and major streaming brands, the
most popular of which were with Paramount+, Disney+, HBO Max and
Netflix. Omdia estimates that 16.5% of video streaming revenue this
year will originate from telco bundles, climbing to 21.5% by
2027.
The rise of super bundling
Though the need to create new revenue streams has been revealed
as a ‘high priority’ for 68% of telcos, streaming partnerships
alone may not be enough to get providers out of the woods. As it
currently stands, the situation is challenging. Telcos face
saturated markets, declining revenue per user and non-stop churn.
While network traffic will grow by 219% in 5 years, revenues are
only projected to grow by 14.6%.
‘Super Bundling’ has emerged as a new revenue stream for telcos
— aggregating hard-to-manage subscriptions into single platforms.
It also enables content providers to reach new audiences at much
greater scale than through one-to-one partnerships.
Commenting on the report, Anil Malhotra, Bango co-founder, said:
"With a fifth of SVOD subscriptions now sold through telco bundles,
it's clear there's a paradigm shift under way in the streaming
market. We’re seeing the emergence of a win-win-win scenario that
benefits SVOD providers, telcos and consumers alike.
“However, streaming is only one aspect of the Super Bundling
phenomenon that Omdia has highlighted in their report. Super
Bundling content hubs like Verizon +play and Optus SubHub go well
beyond video, offering subscriptions for music, health,
productivity and more.
“There are compelling market drivers at work here, not least
consumer subscription fatigue and telcos’ urgent need to
differentiate and boost revenue. Super Bundling is not only a churn
buster — the more services telcos get customers to subscribe to,
the more stickiness they create — but can also turn into a revenue
stream in its own right. For the 100s of companies out there
already bundling, Super Bundling is the natural evolution.”
To learn more about the rise of Super Bundling, download the
full Omdia report here.
About BangoThe Bango platform provides
everything you need for subscription bundling and payments,
enabling you to quickly reach new customers and markets. Connect
once for a standard system of tools used for customer acquisition,
payments and subscriptions, and join an ecosystem of over 150
merchants and resellers already connected to the Bango platform.
Trusted by leading technology companies including Amazon, Google
and Microsoft. For more information, visit www.bango.com.
Media contactLuke Proctor / Tina
SangWildfirebangoresale@wildfirepr.com
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