The world of subscriptions is evolving rapidly. Once known as the “subscription economy” has now transitioned into the subscriber economy reflecting a significant shift in favor of consumer power and preference.
The evidence is clear. Consumers demand access to an ever-expanding array of content—not just TV and movies, but also music, lifestyle, gaming, food, health, fitness, and more. They also want this access on their terms, with the flexibility to switch subscriptions as they please.
For content providers offering their services as subscriptions, and for the telcos partnering with them to reach more customers, this shift to a subscriber-centric economy is a wake-up call. Consumers are prepared to ditch their loyalty to existing brands to satisfy their evolving subscription habits.
According to US subscriber survey by Bango, 68% of subscribers feel there are too many subscription services available today, with an average subscriber paying for 4.5 different subscriptions on a monthly basis. This subscription overload, coupled with economic pressures, has led consumers to call for more control over managing their digital content.
Consumers demand a single platform
Their research found that 73% of subscribers want a single platform for all their subscriptions, and 69% want the ability to pay for multiple subscriptions in one monthly bill. This evolution from a subscription-focused to a subscriber-centric economy is driving the latest trend—Super Bundling.
The evolution of bundling
The first generation of bundling, led by telcos, involved simple one-dimensional offers that combined various telco services. The second generation saw telcos partnering with third-party content providers to offer deals on services such as Netflix as part of mobile contracts. According to PwC, this approach is driving revenues in the streaming video on demand (SVOD) market, forecasted to hit £4.7bn by 2027, overtaking TV subscriptions (£4.1bn), in terms of revenue reflecting a shift in audiences from linear to streaming and laying the groundwork for today’s subscription economy.
Now, with demand for subscription services growing and consumer habits changing, we are entering the third generation—Super Bundling. Super Bundles leverage the second generation's foundation, giving end-users access to hundreds of content providers via a single platform managed by the telco brand.
Super Bundling: Meeting consumer demands
Super Bundling doesn't just offer something that subscribers would like; it gives them something they’re demanding. According to Bango US subscriber research, 79% of consumers said they would be more loyal to a brand that offers Super Bundling. Moreover, 57% of consumers would leave their current TV/broadband/mobile provider if they could access Super Bundles elsewhere.
Super Bundling provides a comprehensive solution to subscription overload by integrating various content services into one manageable platform. This approach not only enhances user convenience but also addresses the economic challenges faced by many households today. By consolidating subscriptions, consumers can potentially reduce their overall expenditure while gaining access to a broader range of content.
The benefits for Telcos
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 30+ subscription 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 in New York City, Sowmyanarayan Sampath, CEO of Verizon Consumer Group said “Verizon has found that when it bundles streaming services, it is able to reduce their churn by 60% to 70%+.
By adopting Super Bundling, telcos can significantly enhance their value proposition. This strategy allows them to attract new customers with the promise of a simplified subscription management system. Additionally, the reduced churn rates indicate a higher customer retention rate, which translates into stable revenue streams for the telcos. Furthermore, the ability to offer promotional deals and discounts on bundled subscriptions makes telcos more competitive in a crowded market.
Addressing the fragmentation
A new guide ‘Going for gold – SportsVOD – Setting new records’ shares more insight on the current landscape of SportsVOD, for example, which is highly fragmented. The average SportsVOD subscriber maintains 7 different subscriptions, costing an average of $120 per month—significantly higher than the $77 spent by typical US subscribers. Super Bundling promises to streamline this fragmented landscape, addressing core frustrations and providing a more seamless viewing experience.
Fragmentation in the subscription market creates significant challenges for consumers, who often struggle to manage multiple subscriptions and payments. Super Bundling addresses this issue by offering a centralized platform that unifies various services under one account. This not only simplifies the user experience but also provides a clearer overview of subscription costs, helping consumers manage their budgets more effectively.
The future is Super Bundling
Super Bundling allows consumers to select whatever content they want—not just entertainment, but also gaming, well-being, fitness, and sport. This model simplifies the decision-making process by offering an all-in-one package that reduces the need for multiple subscriptions and consolidates billing.
As noted in the recent Parks Associates whitepaper, Effective Bundling: Pain Points an Expectation from Subscription Leaders, partnerships with telcos can significantly drive customer acquisition and retention, as well as increase customer satisfaction. This aligns with the findings that bundled services can enhance service discoverability and reduce payment friction.
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 not only the consumers but also the content providers and telcos, creating a synergistic ecosystem where each party gains.
[Super bundling] is a great idea… great option for consumers – consumers might have a preference for one service versus another, but might get a bundle with both – two for the price of one. This is where consumers are heading. Aggregation to where you can take six to seven subscriptions and bring them together. Bundles are an easy choice for consumers, especially now that people are paying a hundred dollars or more [per month] for streaming video services.” – VP of Business Development, Streaming Video, Media Conglomerate
Consumer preferences and market trends
Consumers today are highly selective and value flexibility. According to 2024 US research, Subscriptions Wars: Super Bundling Awakens, 57% of subscribers regularly pause and restart their subscriptions, seeking flexible subscription models that adapt to their needs. This trend indicates a growing demand for services that allow users to control their subscription lifecycle without penalties.
Furthermore, the introduction of ad-supported tiers has received mixed reactions. While some consumers appreciate the lower cost, others strongly object to ads in paid subscriptions. As many as 78% of subscribers are against paid subscriptions featuring ads, and 31% have canceled a subscription due to the introduction of ads. This highlights the need for content providers to balance cost-saving measures with user experience.
The role of content providers in Super Bundling
Content providers play a crucial role in the success of Super Bundling. By partnering with telcos, they can reach a wider audience and benefit from the established billing and distribution networks of their partners. This collaboration not only enhances the visibility of their services but also reduces marketing and distribution costs.
According to Parks Associates, bundling and partnerships have been instrumental in driving user acquisition and reducing churn. Subscription companies report that partnerships with telcos have historically driven 15-20% of their user acquisitions. This underscores the strategic importance of these collaborations in the highly competitive subscription market. Warner Bros. Discovery CEO David Zaslav has said he views bundling as the future of the business, particularly as the economic and regulatory market isn’t conducive to mergers.
[Our] early subscription growth was fueled by partnerships. You break into the market through these partnerships. People knew [our company], but not [yet] as a subscription service.” – Head of Subscription Partnerships, Streaming Video Service
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. The ability to access diverse content through a single platform, manage subscriptions seamlessly, and enjoy cost savings will define the next era of the subscriber economy.
Content providers, telcos, and other stakeholders must embrace this shift and collaborate to create value-driven, consumer-centric solutions. By doing so, they can ensure sustained growth, enhanced customer loyalty, and a more streamlined, enjoyable user experience.
StreamTV Show 2024
To learn more about Super Bundling and meet with the Bango team, join us in Denver at the StreamTV Show – catch Giles Tongue on stage twice. Join his keynote and panel during the Mastering the Subscription TV Landscape pre-conference workshop on June 24, or June 25 on the Monetization Track during the main conference at 1:30pm MDT, Optimizing Subscriber Revenue: Bundling Strategies, Pricing Models, and the World Beyond Advertising