Report: 20% of Streaming Video Subscriptions Sold Through Telecom Bundling

About 20% of all streaming video subscriptions are now sold through bundling partnerships with telecom services — a percentage expected to increase to 25% by 2028, according to new data from Omdia and Bango. In certain regions such as Latin America, almost 50% of new streaming video subscriptions will come from telecom providers over the next five years.

Verizon’s +play platform offers bundled access to third-party SVOD services such as Netflix, Max and Paramount+.

Overall worldwide subscription revenue from video, music and other streaming services sold via telecoms will total $24.8 billion in 2023, growing to $42.8 billion in 2027. 

The report finds that the global subscription streaming market remains strong. Earlier this year, Juniper Research similarly found the market is projected to grow by $268 billion over the next three years. 

A recent Bango survey suggests more than 70% telecoms employing bundles access to SVOD services are seeing major gains in customer acquisition and retention, with the bundle the No. 1 driver of new subs. 

It’s win-win for all parties as the telecoms retain and gain subscribers and  content providers reach new customers. At the end of March, Omdia identified more than 1,600 partnerships between telecom providers and major streaming brands, including Paramount+, Disney+, Max and Netflix. Omdia estimates that 16.5% of video streaming revenue this year will originate from telecom bundles, increasing to 21.5% by 2027. 

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At the same time, the reports contends the situation is challenging. Telecoms embracing bundled SVOD service offerings face saturated markets, declining revenue per user and ongoing churn (subscribers dropping service). While network traffic will grow by 219% in 5 years, revenue is only projected to grow by 14.6%.  

“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,” Anil Malhotra, Bango co-founder, said in a statement. “We’re seeing the emergence of a win-win-win scenario that benefits SVOD providers, telcos and consumers alike.  

Malhotra suggests that streaming is only one component of the so-called “Super Bundle” phenomenon highlighted in the report. He says Super Bundling content hubs like +play and Optus SubHub beyond video, offering subscriptions for music, health, productivity and more.  

“There are compelling market drivers at work here, not least consumer subscription fatigue and telecom’ urgent need to differentiate and boost revenue,” Malhotra said. “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.”

T-Mobile Launching Online TV Platform

T-Mobile April 10 bowed “TVision Home,” a rebranded version of Layer3 TV launching April 14 in Chicago, Dallas-Fort Worth, Los Angeles, New York City, Philadelphia, San Francisco, and Washington, D.C. metro areas, as well as Longmont, Co., with other markets coming later this year.

The platform bows at $90/month (including a $9.99/month discount for T-Mobile customers … but available to everyone for a limited time), which includes 150+ channels, local broadcast, regional sports and more. Plus $10/month per connected TV, including DVR for a limited time.

Premium TV packages – like HBO, Showtime and others – or transactional VOD and digital movie/TV show purchases are extra.

T-Mobile is joining a crowded online TV market created in 2015 by Dish Network’s Sling TV. Other players include DirecTV Now, PlayStation Vue, YouTube TV, Charter Spectrum Plus, Fubo TV, Hulu with Live TV, Philo and AT&T Watch TV.

T-Mobile, which inked a content deal with Viacom last week, said Netflix and other streaming apps will be available on the platform.

To generate buzz, the telecom is offering to pay off early contract termination fees for Dish and DirecTV customers, up to $500 via prepaid card, when they switch to TVision Home.

“Today’s news brings us one step closer to taking on big cable,” CEO John Legere said in a statement.

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TVision Home claims “the most” 4K channels as part of more than 275 available channels, 35,000 on-demand movies, TV shows in addition to on-screen social content, personalized home screen, 1 terabyte DVR storage, smart speaker voice control with Amazon Alexa or Google Assistant.

Apps at launch include Pandora, iHeartRadio, XUMO, CuriosityStream, Toon Goggles, HSN, Netflix, YouTube, YouTube Kids. T-Mobile will soon release a companion app for iOS and Android, allowing users to stream content to a smartphone anywhere in the house.

TVision Home is part of T-Mobile’s forward 5G strategy that starts with the Sprint merger – pending regulatory approval.

Claiming that almost half of the country’s households, and more than 76% of rural households have no high-speed service (100 Mbps average), T-Mobile claims that if the merger is approved, the combined company will have the scale and capacity to create a supercharged 5G network capable of reaching over half the country’s households with high-speed broadband by 2024.

“TVision Home is about so much more than home TV… it’s TV built for the 5G era,” said COO Mike Sievert. “With New T-Mobile, we’ll bring real choice, competition, better service, lower prices and faster speeds…right into your living room.