At APOS 2024, Bango CEO Paul Larbey joined Kurt Weber from Amazon and Lesley Simpson from Telkomsel to discuss the growing role of Multiservice Bundles in the future of the subscription economy. The panel explored how telecom operators and content providers can work together to create seamless, valuable bundled experiences for consumers. Below, we dive into the key points discussed and what they mean for the industry.
The power of bundling: Localized Services for global impact
Lesley Simpson explained how Telkomsel has become a leader in offering bundled services to Indonesian consumers by converging multiple services—TV, music, gaming, and more—into one package. Telkomsel’s strength lies in understanding local user behavior, which allows them to craft the right mix of services to meet consumer needs.
“We are helping our users include whatever services they need at home, especially video, by partnering with global providers like Amazon,” Lesley noted. “Bundling allows us to create more tailored offerings for the Indonesian market.”
In Indonesia’s vast and diverse market, bundling services has not only helped Telkomsel expand its reach to 9.1 million homes but also allowed them to deliver content that resonates with local tastes. The ability to deliver personalized, region-specific bundles demonstrates the importance of understanding and catering to local needs when crafting subscription packages.
Amazon’s Strategy: Partnering to Expand Reach and Value
Kurt Weber from Amazon spoke about Amazon’s journey in the subscription space, highlighting how Amazon Prime has become a cornerstone of its global strategy. The company launched Amazon Fuse in 2017, enabling third-party service providers like telcos to offer Prime and other Amazon services to their customers. This strategic move has helped Amazon reach markets they may not have been able to access directly.
“We’re working with partners like Telkomsel, where we’re not particularly strong, to leverage their reach in Indonesia,” Kurt explained. “This not only benefits Amazon, but helps our partners offer differentiated services in a competitive market.”
By partnering with telcos like Telkomsel, Amazon can deliver its content—ranging from SVOD, music, and retail subscriptions—to new customer segments while adding value to telco partners. This approach creates a win-win situation for both consumers and service providers, as Amazon brings its global content library, and local operators provide the infrastructure to reach customers effectively.
The future of subscriptions: Personalization and Flexibility
Paul Larbey provided a forward-looking perspective on the subscription economy, highlighting how personalization and flexibility are crucial in retaining customers. As more services adopt subscription models—from entertainment to retail and even everyday products—consumers are seeking solutions that give them more control.
“The key solution is choice,” Paul emphasized. “Consumers want personalized offers that cater to their individual needs. As more services move to a subscription model, bundling gives businesses a chance to combine content and add value without overwhelming consumers.”
Paul pointed out that businesses must be careful not to overwhelm customers with too much content in their bundles—choice and personalization are essential to keeping consumers engaged. The danger of over-bundling is that it can recreate the complexity of traditional cable packages, which many customers sought to escape in favor of more flexible, à la carte options.
3 Key Panel Takeaways:
- Bundling is essential for driving value
Bundling services like TV, music, and gaming is no longer just a way to reduce churn—it’s becoming the preferred method of delivering value to consumers. As Telkomsel’s success in Indonesia shows, bundling services tailored to local preferences can significantly enhance user engagement and satisfaction, while providing consumers with convenient all-in-one solutions. By integrating more services into one package, telcos can deliver more value, encouraging higher adoption rates and loyalty.
- Strategic partnerships are key to growth
As Kurt Weber explained, strategic partnerships with telcos and service providers have been critical to Amazon’s growth in international markets. By working with partners like Telkomsel, Amazon is able to bring its vast range of content to markets that were previously difficult to penetrate. These partnerships also allow telcos to differentiate themselves in highly competitive markets by offering premium content through exclusive bundles, driving both customer acquisition and retention.
- Personalization will shape the future of subscriptions
The future of the subscription economy lies in personalization. Consumers increasingly expect subscription services to cater to their individual preferences. Offering tailored subscription bundles not only helps reduce churn but also builds stronger customer loyalty. As Paul Larbey noted, the ability to offer personalized, flexible bundles that are easy to manage and navigate will be crucial to long-term success in the subscription space. Bundles that align with individual preferences and needs will stand out in a crowded marketplace.
The role of Digital Vending Machine® from Bango
These insights from APOS 2024 underscore the growing importance of bundling and partnerships in the subscription economy. To find out more about how the Digital Vending Machine® helps Amazon and its telco partners, like Telkomsel, deliver seamless subscription bundling experiences, contact us at sales@bango.com.
