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Super Aggregation and Skinny Bundles - Customer Retention...

04/09/2024

The era of cord cutting continues to redefine how consumers access their favorite content, presenting both challenges and opportunities for broadcast executives, telecommunications companies (Telcos), PayTV providers, OTT services, and streaming platforms.

Pay TV continues its decline while a growing number of consumers migrate to OTT services and streaming platforms. However, subscription fatigue is increasingly common as users juggle multiple subscriptions, each requiring separate logins and payments. The financial expense, paired with the hassle of switching between the platforms of the global streaming giants, frustrates consumers.

It s safe to say that the migration is at an inflection point. The fatigue, coupled with the reluctance to remain tied to non-flexible Pay TV packages, is driving the industry to transform and introduce a new consumer experience, and that experience is clear.

A single destination where consumers have easy access and the flexibility to manage their preferred subscriptions and channels.

The market opportunity is far too large to ignore the cry of the consumers. The global video streaming market size accounted for USD 129.80 billion in 2024 and is predicted to reach around USD 865.85 billion by 2034, growing at a solid compound annual growth rate (CAGR) of 20.90% from 2024 to 2034, according to Precedence Research. The North American video streaming market size reached USD 34.19 billion in 2023. These statistics reveal the scale of the global opportunity.

Telcos, PayTV, OTT services, and streaming platforms must adapt and evolve their business and operational models to not only retain existing customers, but to attract new ones. The decisions they make around transformation will determine whether they grow or contract their subscription business.

Streamlined streaming: the power of convenience Convenience is paramount when it comes to reducing subscription fatigue. Customers are easily overwhelmed by the painful experience of subscription management and delivery across multiple services. The consequence of which is often indecision and lack of action. The goal is to reduce the complexity of the entire experience. The audience simply wants to easily find and watch a variety of quality content, which is not always as easy as it may sound.

Take the example of the show Manifest. While Netflix has the rights to stream seasons one, two and four, in the UK season three is not on Netflix due to licensing restrictions. To watch season 3, consumers have to also subscribe to SkyGo or NowTV. This is not exactly the seamless experience that binge watchers want. In fact, a study by CordCutting.com found that convenience, alongside cost and content, is one of the top three priorities for consumers when choosing or switching streaming platforms.

A single marketplace that manages all subscriptions dramatically enhances the user experience. Features like self-care for subscriptions, unified interfaces for content discovery, and streamlined subscription management play a significant role in achieving this convenience. By providing a centralized platform where users can manage all their subscriptions effortlessly, Telcos can ensure a smoother, more enjoyable viewing experience for their often fickle customers.

Coupled with Amdocs' findings that consumers expect improved experiences with increased costs, these statistics demonstrate a need to provide better experiences to retain customers.

Keep the stream flowing to boost retention and maximize revenue The bundle game is often the best option to reduce churn. According to Forbes, 44% of respondents admit to subscribing to a service solely to watch a single favorite show. Take the example of the popular The Mandalorian on Disney . When the season finishes, many subscribers could be tempted to cancel then resubscribe once the new season starts. But if the Disney subscription is combined with a mobile or broadband plan or perhaps Spotify, viewers are less likely to cancel as they need continued access to their mobile, internet, and favorite music.

Vubiquity addresses these challenges through its Subscription Marketplace Suite, a super aggregation and subscription bundling solution. This super aggregation allows Telco operators to bundle over-the-top (OTT) streaming services, live linear, and other digital subscription services like gaming, music, lifestyle or other apps, to create a rich and personalized experience for their subscribers. Flexible bundle options include precisely curated "skinny bundles" designed around consumers viewing habits, providing a fresh approach to the Pay TV model. Skinny bundles are targeted, cost-effective packages like Now TV in the US or TV from Canal in France that offer essential channels at a lower cost, often without a contract, making them attractive to budget-conscious consumers.

This structure offers a compact package of subscriptions with optional add-ons, blending direct distribution (Linear and On-Demand) with OTT Direct-to-Consumer Apps, thereby leading to a more affordable and targeted offering. The versatility of business models, from Ad-supported freemium to paid subscriptions with all the advanced add-ons and bundling options, helps service providers reach the largest addressable market.

Adding to its client-centric philosophy, Vubiquity s platform incorporates a suite of integration layers that streamlines the viewer s journey. With modules dedicated to the Partner's onboarding and aggregation, Commerce and Subscription Management, and Experience Management across all the distribution channels (Marketplace and Applications), this modular solution handles the end-to-end value chain of aggregation and offers to consumers a single place to discover, subscribe, and access their digital media services and content.

The platform s la carte capabilities pave the
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