Telco 2.0: Why it's time to say goodbye to the traditional service bundle
In the latest installment in our Telco 2.0 series, we look at how service providers can (and are) turning partnerships into new, targeted bundles beyond traditional offerings. Read the previous entry in this series, which is focused on the importance of OTT partnerships in the new age of telco.
How many OTT services do you currently use? According to recent research from Amdocs, consumers are spending over $100 per month on media and entertainment subscriptions. The popularity of OTT subscriptions is likely to grow thanks to factors like hot new offerings, such as Disney+ and the increasing popularity of subscription sports streaming services like DAZN.
Beyond simply providing consumers with more choice, OTT services are doing something else that’s notable: they’re causing a decoupling of the traditional multi-play bundle and dismantling what used to be a single TV package. For service providers, this is creating new opportunities to bundle flexible, digital content services.
So where are we with this flexible bundle, and why is it time to say goodbye to the traditional bundle as we know it?
The new-look bundle
By leveraging several partnerships, some service providers are already starting to offer more flexible bundles. For instance AT&T lets customers who use its Unlimited & More plan choose from several OTT entertainment offerings like HBO, Spotify, and Pandora.
YouSee, a Danish service provider, offers packages that come with “points” so consumers can customize their own bundles. A customer might decide that the best bundle for them includes Netflix, HBO and several individual channels, while others might choose music streaming, sports and games.
As service providers recognize the value of these new bundles, they’re becoming more essential to their retention strategies. Service providers are also seeing the revenue growth opportunity in partner services beyond video and music, such as live sports, gaming, health, fitness and more, especially considering the opportunities presented by 5G.
Getting the customer experience right
Anyone can partner to offer OTT services, but without the right experience, it will only lead to frustration. According to our research, almost 70% of surveyed US consumers would be prepared to pay a single provider who can package all of their subscriptions. Almost 70% of these same consumers would leave their current provider for such a package.
With this in mind, creating the right experience is key. There is no wiggle room for roadblocks like sign-up difficulties or limited payment options – hassles that most of today’s consumers are unwilling to tolerate. But beyond customer experience challenges, service providers also need to know they can integrate each OTT partner without having to endure lengthy IT headaches as part of the process. Otherwise, the strategy becomes simply unfeasible.
The formula for partnerships at scale
It can be challenging and expensive to get all these elements right for just one OTT partner. That’s part of the reason that service providers have favored forging just one or two partnerships. But the flexible bundles that customers really crave mean that service providers need to offer several—even dozens—of customizable options.
The bottom line is that the time is ripe to seize the initiative by taking a revised approach to building out these new, flexible bundles. This means taking a path that simplifies partner integrations, while also creating a frictionless end-user experience that wins and retains customers.
Get started with Amdocs Media’s MarketONE.
Ian Zeifman leads product marketing for Amdocs Identity & Commerce