Picture this: you’re just back from an all-inclusive package holiday to a summer-perfect, sun-soaked location. Delivered in a style you never really dreamed you’d ever be interested in, all-inclusive that is. The whole concept of staying in a resort, with food and drinks catered for, might sound somewhat like a luxurious prison to some. Why would you want everything bundled, and a single payment to cover it all?
Other than the early morning sprint to secure a lounger by the pool with your towel, it can be convenient and comfortable, not having the pressure of thinking about where to eat in the evenings, removing all the stress. However, what if you felt like eating out somewhere rather than at your hotel? Much like making a one-off TVOD purchase for a new movie you really want to see when you’re already subscribed to an SVOD service. So, what’s all this fuss about package holidays? It seems as though this is the attitude SVOD services are adopting when it comes to the bundling of services and aggregation of content. More is more, right?
It’s no secret that SVOD services are feeling the strain, with dwindling subscribers and churn rates climbing. What worked for the acquisition of subscribers won’t work for retention, with many SVOD giants now losing out to the newcomers in the industry. In the early days of SVOD services, aggregation looked like the future. It was too expensive to build an owned and operated service, especially as a smaller content owner. Now, that’s not so true, with many going direct to consumers (D2C) with their content by creating their own streaming service. So, if the largest streaming services can’t acquire the content itself, what can they do instead?
Bundling of services is gaining popularity, most recently with Sky providing their users with Paramount+ as part of their existing subscription. It appears the early morning race for the poolside lounger in the OTT world is who can bundle with whose service first, just don’t forget your towel. Pay-Tv and SVOD subscribers are set to pass 3 billion in 2027, so, gaining a share in the market with the correct bundling of services could see newcomers joining forces and surpassing the giants – if done correctly. With many services surfacing in new territories, it's never been more important to provide subscribers with a premium experience. For instance, India saw a newcomer streaming provider surpass two of their largest services with a relaunch in 2020, jumping from 0.7 to 18.2 million subscribers, credited to the launch of new popular content titles and a much-improved UI.
It may seem impossible to enter the OTT market if you’re small, but if your content is high quality, all you need is the right technology partner to get you to market. Much like David had his slingshot when fighting Goliath, your technology vendor of choice and its partners and integrations could be yours. Just try and avoid fighting Goliath for his lounger.