New research shows growing trend in subscription ‘Super Bundling’

The subscription streaming industry is increasingly moving toward a ‘Super Bundling’ approach, a strategy that consolidates multiple services into a single offering. This trend, as revealed by Bango’s recent research, is gaining traction among subscription services, especially with telecom companies.

Bango’s study, involving insights from over 100 executives from top music, video, and multi-service content providers, indicates a strong endorsement of this Super Bundling model. This approach, already being utilized by telecom operators like Optus SubHub and Verizon +play, consolidates various subscription services into one package.

A primary driver for this shift is the pursuit of new customer acquisition, cited by 73% of subscription leaders, with reducing customer turnover following closely at 68%.

These leaders view Super Bundling as a crucial component in their future strategies, with 53% already considering it vital for customer acquisition and retention. Furthermore, nearly a third warn that ignoring this trend could result in significant revenue and market share losses.

Subscription services are identifying numerous opportunities with Super Bundling, but the window to capitalize on these advantages seems narrow. A notable consensus among subscription leaders is the belief that partnering with providers from other industries is beneficial (69%) and that Super Bundling will become an essential revenue source (66%).

However, these opportunities come with challenges. About 61% of leaders acknowledge the complexity of managing multiple partners as a core difficulty. Technical integration, complex contract negotiations, and time-consuming onboarding processes are other significant hurdles faced by over half of the respondents.