A new report from Bango, Super Bundling: Inside Secrets, highlights a growing consensus among leading subscription services: telcos have become essential partners in the bundling market. With consumer demand for streamlined subscription management at an all-time high, telcos are uniquely positioned to drive growth for media companies by centralizing services through “Super Bundling”—integrating multiple subscriptions into a single, user-friendly hub. As media companies look to expand their reach and reduce churn, partnering with telcos offers a strategic advantage that could redefine the future of the subscription economy.
Media and entertainment companies grapple with subscriber fatigue and high churn rates in an industry saturated with options. The Bango report indicates that by offering content bundles through telcos, media companies can deliver greater value and simplify the customer experience, addressing consumers’ call for fewer logins, consolidated billing, and improved convenience. This shift toward telco partnerships is not a localized phenomenon; demand for telco-led bundling is global, with the report showing that 66% of East Asian consumers, 55% in Latin America, and nearly half in Europe and the Americas want their mobile operators to lead in bundling offerings.
Telcos’ inherent strengths—extensive subscriber bases, established billing systems, and high consumer trust—give them a unique edge. A senior executive from one of the top three streaming platforms in Bango’s report describes telcos as “one of the best partners for streaming companies,” citing advantages in reach, frictionless payments, and user acquisition. Media companies, in turn, benefit from this established trust, as telcos provide a seamless channel to engage and retain subscribers who might otherwise be lost to churn.
For media companies, bundling with telcos represents more than just a convenient distribution method; it’s an opportunity to lower churn and boost loyalty. Bundling can be particularly effective in targeting audiences that might otherwise be hard to reach, such as traditional TV viewers transitioning to streaming. With platforms like Verizon’s +Play and Optus SubHub already leading successful Super Bundling models, telco-led bundles are proving their ability to deepen customer loyalty. Verizon reports a 60-70% reduction in churn among bundle users.
This trend toward indirect channels, where telcos and banking apps are playing increasingly pivotal roles, reflects a broader movement away from direct-to-consumer (DTC) models. In 2023, only 37% of subscription video-on-demand (SVOD) subscribers went directly through service providers, with the remaining 63% acquired via indirect channels. Banking apps, too, are tapping into this opportunity; consumer surveys show that 64% of subscribers trust their banking apps more than subscription platforms or app stores, particularly for data security, reinforcing the demand for innovative and consolidated subscription management.
Bango’s Digital Vending Machine® (DVM) solution, detailed in the report, addresses the integration complexities that often hinder bundling initiatives. The DVM allows telcos to swiftly onboard subscription partners without requiring customizations by offering pre-built integrations and standardized APIs. Optus and Verizon are leveraging this technology to efficiently manage and expand their content hubs, setting a model for future bundling efforts that media companies can easily plug into.
Beyond technology, data insights are central to Super Bundling’s value proposition. Shared analytics empower media companies to understand subscriber behavior, enabling personalized offers and targeted marketing that deepen engagement. As media companies continue to compete for consumer attention, this access to telco-generated insights is invaluable for refining content strategies and maximizing user retention.
The Bango report’s findings indicate that telcos aren’t just intermediaries but pivotal players in the subscription economy, offering the media industry an attractive solution to the challenges of scaling subscriber bases and managing retention. In an increasingly competitive landscape, the Super Bundling model provides a path to sustainable growth and an enhanced user experience, making telco partnerships a compelling option for any media company looking to thrive in the next era of the subscription economy.
You can download the full Bango report, Super Bundling: Inside Secrets, here.
