Presented by Bango
In the ever-evolving world of subscriptions, consumers' needs and preferences are driving significant changes. As the subscription landscape becomes increasingly complex, a new trend is emerging: Super Bundling. This innovative approach promises to address the challenges of subscription overload and offers a streamlined solution for both consumers and service providers.
The evolution of bundling
Historically, bundling involved simple combinations of various telco services such as call time, SMS and data. The second generation saw partnerships between telcos and third-party content providers, offering deals on services like Netflix as part of mobile contracts. According to PwC, this strategy is driving revenues in the streaming video on demand (SVOD) market, with the US SVOD market forecasted to reach $109.1 billion by 2027, surpassing traditional TV subscriptions.
Today, we are witnessing the rise of Super Bundling, a comprehensive approach that allows consumers to manage multiple subscription services through a single platform. This evolution not only simplifies the user experience but also addresses the economic pressures faced by many households.
Meeting consumer demands
The demand for a unified subscription management platform is clear. According to research by Parks Associates, 94% of U.S. internet households have at least one subscription service, and over half subscribe to four or more streaming video services. This growing subscription fatigue is leading consumers to seek more efficient ways to manage their digital content.
The latest U.S. subscriber survey from Bango found that 73% of subscribers want a single platform for all their subscriptions, and 69% desire the ability to pay for multiple subscriptions in one monthly bill. This shift from a subscription-focused to a subscriber-centric economy is driving the trend towards Super Bundling.
The benefits of Super Bundling
Super Bundling provides a comprehensive solution to subscription overload by integrating various content services into one manageable platform. This approach enhances user convenience, potentially reduces overall expenditure and offers access to a broader range of content.
Telcos like Verizon and Optus have already taken the lead with Super Bundling. Verizon's +play platform offers customers over 40 different subscription services, while Optus SubHub provides more than 30 services with increasing discounts depending on the number of subscriptions taken. These initiatives help telcos acquire new customers, reduce churn and increase revenue by offering an easy-to-use subscription platform.
At the Paley International Council Summit 2023, Sowmyanarayan Sampath, CEO of Verizon Consumer Group, highlighted that bundling streaming services significantly reduces churn by 60% to 70%.
Addressing market fragmentation
Fragmentation in the subscription market creates significant challenges for consumers, who often struggle to manage multiple subscriptions and payments. Super Bundling promises to streamline this fragmented landscape, providing a more seamless viewing experience. According to Parks Associates, partnerships and bundling strategies are crucial for driving customer acquisition and retention. Subscription companies report that partnerships with telcos have historically driven 15-20% of their user acquisitions.
In discussing the benefits of these partnerships (part of qualitative research conducted by Bango), a senior product lead at a streaming video service noted, "The goal of bundling and partnerships is to optimize the monetization of content -- get it on as many distribution channels as you can. These partnerships are good for business, they're actively being pursued...[they are] revenue drivers and have built [our] customer base."
Another executive highlighted the strategic importance of these collaborations: "We wanted to structure long-standing deals, create long-standing relationships. It created a competitive mode, too -- telcos and OEMs, there’s a limited number of partners, three to five potential partners per market in most cases. So, when we found one, established a partnership – especially if we did technical work – we wanted it to be a repeated multiyear agreement".
Additionally, a report by Omdia highlights the growing role of telcos in the SVOD market: "Globally, 1 in 5 SVOD subscriptions are exclusively signed up through telcos, rising to 25% in 2026. In some regions such as LATAM, this is 50%." This underscores the importance of telco partnerships in expanding market reach and driving subscriber growth.
The future is Super Bundling
Super Bundling represents the next evolution in the subscription economy. It transforms the way consumers interact with content by providing a one-stop solution for all their subscription needs. This model benefits consumers, content providers and telcos, creating a synergistic ecosystem where each party gains.
As noted in the Parks Associates white paper, effective bundling and partnerships can significantly drive customer acquisition and retention, increase customer satisfaction and reduce payment friction. According to the head of subscription partnerships at a streaming video service, "Strategically, we used [partnerships with telcos] to amplify a launch in a new country. We originally launched in a few countries, and then went to 95. This magnified our marketing dollars and let us leverage the telco for localized messaging and creatives".
Conclusion
The rise of Super Bundling is permanently altering the subscription landscape. By enabling all-in-one subscription platforms, it offers consumers flexibility, transparency and centralized control over their subscriptions. This not only benefits consumers but also content providers and telcos, creating a win-win-win situation for all involved.
As we move forward, the subscriber economy will continue to evolve, driven by consumer demand for greater control and flexibility. Super Bundling is not just a trend; it’s the future of how we will manage our digital lives.
For more insights on Super Bundling and its impact on the subscription economy, download the full report from Parks Associates here or contact Bango at sales@bango.com
Anil Malhotra is Chief Marketing Officer and Co-founder at Bango.
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