LONDON, May 2, 2024
/PRNewswire/ -- New findings from Omdia's 'Bundling's Impact on
the Global Streaming Market' report reveal that Netflix
maintains significant advantages due to its 'first-among-equals'
status within the streaming sector. This valuable position allows
Netflix access to direct subscription from customers and avoid
revenue sharing with platforms such as iOS or Google.
Omdia's research highlights that about 98% of Netflix's bundled
subscribers are from pay TV, telco, and wholesale deals. In
contrast, Amazon Prime Video relies more on its own ecosystem, with
only 10% of its bundled subscribers coming from external deals,
while 85% co-subscribers to the Prime bundle.
Omdia Principal Analyst and lead author of the report
Sarah Henschel, commented: "The
delivery of paid online video subscriptions has evolved far beyond
a simple one-to-one purchase agreement between a customer and an
operator. We wanted to investigate this in some depth to discover
more about how the streamers are making the most of the bundling
options open to them."
The research breaks down bundling types across pay-TV and telco
operators, online channel aggregators, credit card and banking
services, consumer goods and devices, and co-subscription
services.
Henschel added: "We already knew that Netflix pioneered the
pay-TV and telco partnership space in the 2010s, aiding in reducing
churn and expanding with media partners. But we've also highlighted
that HBO Max, or now Max, uniquely grew most of its bundled
subscribers from legacy pay-TV partnerships and wholesale linear
deals. Disney+ focused on a combination of pay-TV, telco and device
deals with Disney+ Hotstar in India and US Disney/Hulu/ESPN bundles boosting
co-subscription shares. Apple TV+ utilized Apple One
co-subscriptions and device partnership discounts to scale the
service. It has also sought telco bundles such as its T-Mobile
deals in the US. Today, bundling opportunities are utilized not
only for scale, but to reduce churn and focus on owning data and
customer relationships. Effective bundling today requires a
symbiotic relationship to deliver value."
Adam Thomas, Omdia's Senior
Principal Analyst for TV & Video said: "While these remain
the most common methods for bundling SVOD services with other media
and utility packages, Omdia's new research has found that bundling
initiatives can now take many forms. These exist in both digital
and physical formats, with media and non-media-focused partners,
and can come with or without direct-carrier billing
capabilities."
Principal Analyst Tony
Gunnarsson, added: "Operators have historically collaborated
with streamers for next-generation telco bundles, but the future of
streaming extends beyond this. Services are now being marketed and
resold across various sectors, including banking, airlines and
consumer goods and services. The era of streaming as a standalone
direct-to-consumer proposition is over signaling streaming's status
as an essential household service and underlining the industry's
overall maturity."
ABOUT OMDIA:
Omdia, part of Informa Tech, is a technology research and
advisory group. Our deep knowledge of tech markets combined with
our actionable insights empower organizations to make smart growth
decisions.
Fasiha Khan
Fasiha.khan@omdia.com
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SOURCE Omdia