April 22, 2022
Parks Associates announced a new survey study, which reveals that 59% of OTT subscribers said they prefer one bill and one account for all of their home subscription services, while 48% feel their home internet service provider adds more value when online video services subscriptions are offered.
“Simplicity has a fundamental appeal to consumers that service providers can leverage,” research director Paul Erickson said in a statement. “Consumers are seeing value and simplicity in receiving a bundle of channels and services from a single source, and they are increasingly seeking out options that offer OTT services bundled with their home services.”
The study found that 40% of OTT subscribers report that 100% of their streaming services are bundled through a home service provider. In contrast, just 31% of OTT subscribers report none of their services are bundled through a home service provider.
While some of these consumers prefer to keep their video and home services separate, many are simply not aware of the availability of online video service bundled offerings.
Word of mouth and recommendations through family and friends are the main avenues for households to discover these bundling options, so home service providers can increase adoption, especially among consumers ages 18-44, by encouraging current subscribers to discuss these offerings within their social circle.
“Verizon’s newly announced Verizon Plus Play, in partnership with Netflix and other services, is an example of service providers serving these consumer demands for simplicity and convenience, via unified subscription management and billing for multiple OTT services,” Erickson said. “The addition of OTT services to service providers’ subscription and bundled service offerings is a viable way to add value, increase long-term ARPU, reduce subscriber churn, and increase stickiness with consumers.”