The Fast Mode: Segmented Bundling - Road to Increased Prepaid Monetization?

The British mobile operator EE and Apple entered a partnership to bundle Apple Music with EE services in August. While OTT bundling is commonplace for carriers, this partnership is notable because EE has a differentiated offering for its prepaid & postpaid subscribers. Postpaid subscribers get Apple Music but the prepaid subscribers can listen to music through MTV Trax instead. Such a segmented approach to bundling includes significant advantages for mobile operators, both in reducing churn and increasing revenue.

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