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.
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.”