This white paper looks at how over-the-top (OTT) video and music streaming services work with telecommunications companies (telcos) on product bundling partnerships for user acquisition, user retention and new revenue.
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What is bundling?
Product bundling means offering several products for sale as one combined product or service package. For streaming companies, bundles are most frequently created with telcos:
- Telcos include the streaming service in their tariff plans
- Streaming service offers extended free trial for telco customers
- Telcos run marketing campaigns to get users signed up
- After the promotional period, users are converted to paying subscribers
Omdia estimates that as of Q3 2019, there were more than 540 digital content bundles launched across the world by video streaming services. This partnership model is also used by music streaming services. We believe the emergence of 5G and cloud gaming will mean that gaming services will soon start launching telco bundles as well.
For streaming services, telcos are an organic match for product bundling as they provide the infrastructure (devices and connectivity) through which audiovisual content is consumed.
Telco bundles are usually launched by streaming services in parallel to their own marketing activities, as telcos provide several competitive advantages in user acquisition:
- Local marketing channels to reach consumers are already set up
- Detailed knowledge of local market demographics and target audiences
- Pre-existing identity verification and billing relationships that make user acquisition and following payments seamless
Interested in learning more?
The full white paper below gives an overview of the different bundling partnership types, how bundles are set up from a technical perspective, what results bundling can bring and how marketing activities impact the success of such partnerships.
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