At the recent Nextv Series Europe in Warsaw, leading voices from the telco and OTT industries gathered to tackle a pressing question: “Is telco diversification beyond connectivity still the best model?” Moderated by Inga Alika, a C-Suite executive with over 20 years of leadership experience across entertainment, media, and tech, the panel delved into the evolving role of partnerships, the opportunities for super aggregation, and the complexities of OTT services. With her extensive expertise in digital transformation—spanning from traditional pay TV to streaming on both the business and technology sides — Inga skillfully guided a vibrant discussion that offered actionable insights into the future of telco diversification.
The Subscription Conundrum: Growth meets complexity
With over 6,000 OTT players globally, the subscription market is booming—but it’s also creating new headaches for consumers and telcos alike. As Giles Tongue, VP Marketing at Bango, highlighted, “The subscriptionization of everything is creating massive confusion. People don’t know where they subscribed or how to manage it.”
Consumers are overwhelmed by the sheer volume of services, leading to subscription fatigue. Yet, as Giles noted, this problem can be flipped into an opportunity: bundling. Research shows that the more subscriptions a consumer has, the more loyal they are. Bundling can drive acquisition, improve retention, and boost Net Promoter Scores (NPS)—but only if done right.
However, bundling isn’t without its hurdles. Hubert Cierpica, Head of Strategy at T-Mobile Poland, noted that “data traffic from OTT consumption is growing by 10–20% annually,” pushing telcos to innovate faster than ever before. Meanwhile, Krzysztof Kaczurba from Orange Polska highlighted the struggle to provide seamless user experiences, stressing, “Consumers want their services unified—not a mix of disconnected platforms.”
“Consumers want their services unified—not a mix of disconnected platforms.”
Krzysztof Kaczurba, Director of Development Strategy, Orange Polska
What’s new: The shift from content to ecosystems
One of the new insights from the panel was the shift in focus from individual content offerings to ecosystems of services. As Yuliya Daineko, Head of Product Portfolio Evolution at A1 Telekom Austria Group, explained, “The challenge isn’t just about offering content; it’s about creating an ecosystem that resonates with both local and global audiences.” This requires telcos to think beyond traditional content partnerships and consider broader consumer needs, from gaming to e-learning to wellness.
Additionally, the conversation highlighted the growing role of regional adaptation. While global players like Netflix and Disney+ dominate headlines, localized services are key to driving engagement in smaller markets. This requires telcos to maintain a careful balance between scalability and cultural relevance—a challenge platforms like the Digital Vending Machine® are uniquely equipped to address.
Opportunities for telcos: The rise of Super Bundling
Telcos have a unique position to simplify subscription management for consumers. Through partnerships with OTT players, they can offer value-added bundles that address consumer pain points.
Giles shared a compelling case study from Verizon in the US, showcasing how a multi-layered bundling strategy can drive acquisition, retention, and loyalty. Verizon’s “Super Bundling” approach combines hard bundles, soft bundles, and à la carte options to deliver maximum value and choice to customers.
Hard Bundling:
Verizon attracts new customers with a high-value offer: YouTube Sunday Ticket, a premium NFL subscription worth approximately $400, included as part of the sign-up package. This hard bundle creates immediate, tangible value for new subscribers.
Soft Bundling with Choice:
Verizon adds flexibility with its soft bundle option, offering perks like the “NetMax” bundle (Netflix and Max) for $10 per month (ad-funded tier). This customization gives customers control and caters to individual preferences, standing out in the market.
À la Carte Content Hub via +play:
Verizon’s +play platform ties it all together, providing a centralized hub where subscribers can manage multiple services. This seamless interface enhances the bundling experience, making it simple and user-friendly.
By integrating hard bundles, soft bundles, and an à la carte platform, Verizon delivers a comprehensive and customer-centric subscription experience. This approach not only attracts new subscribers but also builds lasting loyalty through choice, value, and simplicity.
The role of the Digital Vending Machine®
The panelists agreed that speed and simplicity are critical for successful bundling strategies. As Giles explained, the Digital Vending Machine® from Bango streamlines the integration process for telcos and OTT providers alike. “With one connection to our platform, content providers can access telco audiences globally, reducing integration time from months to weeks,” he noted.
This approach solves a major pain point identified by Yuliya Daineko, who emphasized the need for scalable solutions. “We don’t want to maintain relationships with every small service globally. Platforms like Bango let us test new offerings quickly and pivot based on consumer response,” she said.
“We don’t want to maintain relationships with every small service globally. Platforms like Bango let us test new offerings quickly and pivot based on consumer response”
Yuliya Daineko, Head of Product Portfolio Evolution, A1 Telekom Austria Group
Key takeaways for the future
- Flexibility and Control: Consumers want tools to manage subscriptions seamlessly. Super Bundling is emerging as the answer to subscription fatigue.
- Partnerships Drive Value: Telcos must strike the right balance between direct and indirect relationships with OTT providers to deliver tailored, high-value bundles.
- Simplicity Wins: From pricing models to user interfaces, simplifying the customer journey is crucial for driving loyalty and reducing churn.
The insights from Nextv Series Europe underscore the critical role of bundling in driving value for consumers and telcos alike. Platforms like the Digital Vending Machine® empower telcos to navigate the complexities of multi-service partnerships and deliver unified, consumer-first experiences.
Whether it’s integrating global OTT services or creating region-specific bundles, the future lies in agility, innovation, and understanding what consumers truly want: choice, simplicity, and control.
Mobile World Live has produced an infographic to show how Super Bundling is the secret weapon
in the quest for subscriber growth and retention. Download your copy here.
To learn more about how Bango supports telcos and OTT providers in crafting winning bundling strategies, reach out via our contact us page.