Bundle up: 81% of subscription leaders say bundling is the future for their industry
16 Novembro 2023 - 10:30AM
New Bango research reveals subscription leaders are betting on
cross-industry bundling as the future for their fast-growing
industry. The research highlights a focus on ‘Super Bundling’ — a
model that provides integrated management of subscriptions through
a centralized content hub, delivered through aggregators like
telcos.
With data from over 100 executives across leading music, video,
and multi-service content providers, the study shows widespread
endorsement of the Super Bundling model. This model is already a
key growth strategy with telcos, as exemplified by offerings such
as Optus SubHub and Verizon +play content hub, which bring together
dozens of subscription services.
Explaining the rationale behind the subscription industry’s push
towards Super Bundling, over two-thirds of subscription leaders say
‘new customer acquisition’ (73%) is a high priority, closely
followed by ‘reducing churn’ (68%).
The road ahead
The research shows that subscription providers have identified
several key opportunities in Super Bundling, while emphasizing that
time is of the essence.
More than three out of five subscription leaders agree that:
- Subscription services should be bundling their services with
content providers from other industries (69%)
- Super Bundling content hubs will be a vital revenue source for
subscription services in the future (66%)
- Super Bundling content hubs will offer a strong competitive
advantage for subscription services (65%)
Over half of these executives (53%) already say Super Bundling
will play a vital role in their future customer acquisition and
retention strategies. Some go as far to say that not pursuing Super
Bundling could be damaging, with almost a third (31%) warning of
potential revenue and market share loss for those that don’t adapt
quickly enough.
When deciding who to select as their bundling partners,
communications service providers dominate, with 60% of subscription
leaders citing satellite/cable providers as most effective,
followed by broadband (56%) and cell phone companies (56%).
Technical roadblocks
While keenly aware of the opportunities of Super Bundling,
subscription leaders also point to challenges implementing the
model. Three out of five (61%) report that their core challenge
when bundling subscriptions is the complexity of managing multiple
partners.
When trying to achieve this through reseller partners such as
telcos, more than half report that the top challenges they face in
partnering effectively are:
- Technical integration issues (64%)
- Complexity of contract negotiations (63%)
- Time-consuming onboarding processes (52%)
Back to the future
To overcome the technical challenges of Super Bundling,
subscription services need access to specialized technology and
infrastructure. Even for those who have the basic tools required to
support bundling, building a unified user experience that brings
together multiple vendor subscriptions can be complex and
costly.
"This is where the Bango Digital Vending Machine® (DVM) meets a
critical need," says Bango CMO and co-founder Anil Malhotra.
"Tackling the complexities of sign-up, billing, partnerships and
subscription management is no small feat, but we’ve got you
covered.
"The Bango DVM, a subscription bundling SaaS platform, handles
the heavy lifting of Super Bundling, providing the infrastructure
to bring together aggregators like telcos with diverse content and
service providers through one unified hub. This allows subscription
providers to focus on what they do best - delivering excellent
content experiences to their subscribers."
To learn more about Super Bundling and the future of
subscription services, download the full report here.
About BangoThe Bango Digital Vending Machine®
provides everything you need for subscription bundling and
payments, enabling you to quickly reach new customers and markets.
Connect once for a standard system of tools used for customer
acquisition, payments and subscriptions, and join an ecosystem of
over 150 content providers and resellers already connected to the
Bango platform. Trusted by leading technology companies including
Amazon, Google and Microsoft. For more information, visit
www.bango.com.
Media contactLuke Proctor / Tina
SangWildfirebangoresale@wildfirepr.com
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