A new report by Bango reveals that East Asia is leading the world in subscription bundling, with over a third (34%) of consumers in the region subscribing to services via third-party bundles. This trend, significantly higher than in the USA (20%) and Europe (30%), is reshaping how businesses approach subscription management. In Japan, nearly 40% of subscribers opt for indirect subscription methods — the highest across the surveyed countries.
Bango’s survey of 5,000 subscribers across Japan, South Korea, and Taiwan highlights the growing preference for bundling in East Asia, where consumers juggle an average of 3.3 subscriptions per person. The region’s consumers spend $29 monthly ($348 annually) on services spanning video, music, gaming, and retail. Taiwan stands out with an even higher figure of $35 monthly, driven largely by its robust gaming culture, where 42% of subscribers pay for gaming services, compared to just 25% in the USA.
Streaming and Subscription Video Revolution
In recent years, the Asia Pacific region has emerged as a hotbed for streaming video, leading a transformation in the entertainment and media landscape. The rapid rise of high-speed internet, increasing smartphone penetration, and a growing appetite for diverse content are driving a revolution in how consumers access and consume media.
Japan, South Korea, and Taiwan are key players in this revolution. In Japan, the subscription video-on-demand (SVOD) market is projected to reach $3.25 billion in 2024, growing at a compound annual growth rate (CAGR) of 6.81%, with revenues expected to hit $3.96 billion by 2027. The average revenue per user (ARPU) in 2024 is estimated to be $64.79, with the user base expected to reach 58.8 million by 2027. The market is driven by local services like Netflix Japan and Hulu Japan, which offer culturally relevant content tailored to Japanese audiences.
South Korea’s SVOD market is projected to generate $1.55 billion in 2024, with a strong annual growth rate of 7.40%, bringing the market value to $1.92 billion by 2027. The ARPU in South Korea is expected to reach $83.61 in 2024, with users growing to 22 million by 2027. This market is highly competitive, with local platforms such as TVING and Wavve thriving alongside international giants due to their focus on Korean-language content and original productions that resonate with the local audience.
Meanwhile, although smaller, Taiwan’s SVOD market is expected to reach $298.9 million in 2024, growing at a modest CAGR of 3.46% to $331 million by 2027. Taiwan’s ARPU is forecasted to be $84.78 in 2024, with a projected user base of 3.6 million by 2027. The market growth in Taiwan is propelled by a rising demand for local content, particularly in niche genres like anime and gaming.
Localized Content: The Key to Unlocking East Asia
For Western content providers seeking to break into the East Asian market, understanding the need for localized content is critical. Bango’s report indicates that 70% of East Asian subscribers prefer services that offer content in their native language, making cultural relevance a deciding factor.
Netflix has successfully expanded in Japan and South Korea by producing localized original content, such as the Japanese series Alice in Borderland and the Korean hit Squid Game. As these services continue to scale, content providers must invest in tailored programming to capture the hearts and minds of East Asian audiences.
The Rise of Super Bundling
As East Asian consumers manage multiple subscriptions, the demand for simplified management is growing. Nearly two-thirds (64%) of subscribers are eager for a single app that manages all their subscriptions, rising to 71% in South Korea. Super Bundling—a consolidated hub where users can manage multiple subscriptions under one interface—is emerging as a solution.
Telecom companies in East Asia are already meeting this demand with services like SK Telecom’s T Universe and AU by KDDI’s bundles, following the footsteps of Verizon’s +play in the US. These platforms offer users more choice, flexibility, and control, enhancing the overall user experience. Bango’s report notes that over half (60%) of East Asian consumers would spend more time using their subscriptions if managed via a single platform, with 50% likely to subscribe to more services.
Super Bundling: A Path to Growth
Super Bundling presents a powerful opportunity for content providers to drive engagement and boost revenues. Bango’s data shows that 37% of East Asian subscribers would be willing to pay more for a package that includes their favorite subscriptions, with this figure rising to 47% in South Korea. The trend is clear: simplifying subscription management through Super Bundling could be the key to unlocking higher user engagement and new growth.
Moreover, 60% of consumers would show greater loyalty to brands offering an all-in-one subscription solution, and 58% would recommend such services to others. Financial management also plays a role, with 62% of subscribers believing that bundling would help them better manage household expenses.
Telcos as Key Players
Telecom companies are poised to become central players in the subscription bundling landscape. Two-thirds (66%) of East Asian consumers would prefer their mobile operators to offer Super Bundling services — a demand much higher than in the USA (50%) or Europe (46%). With strong existing customer relationships and infrastructure, telcos are well-positioned to lead this market shift and capture a loyal subscriber base.
Opportunity Awaits
As the subscription economy in East Asia continues to evolve, global players looking to expand into the region should consider the potential of Super Bundling and localized content strategies. By partnering with local telcos and addressing consumer preferences, international content providers can unlock new revenue streams and build lasting loyalty in this dynamic and rapidly growing market.
Download the new report from Bango here.
