August 01, 2022 - 359 views|
By putting a digital spin on the classic content package, super aggregators can create a unified CX that’s ready to thrive amid the streaming wars.
Binge-and-bolt is the name of the game in the streaming services marketplace. In the first quarter of 2022, nearly 30 million viewers canceled subscriptions, and another 37 million added them.
There’s a solution to customer loyalty, however, that involves putting a modern spin on an unlikely concept: the video bundle.
Consumers are actually growing nostalgic for bundling, with its integrated billing and one-time setup mechanism for tasks like single sign-on and parental controls across hundreds of channels. While streaming’s a la carte approach offers more choices and lower prices for consuming content and music, it also requires a dizzying array of usernames, passwords and payment processes. The average smartphone user accesses a total of 24 apps per month and maintains (or tries to) 70-plus passwords.
Streaming also makes content discovery a headache for subscribers as they jump among multiple platforms, with no single service building a comprehensive view of preferences.
By forming partnerships to fortify their video packages with other digital experiences—think fitness and even education—streaming services providers can offer the best qualities of the time-tested cable bundle: higher customer value, one-stop convenience and advantageous pricing.
This “super aggregation” model is being pursued even by streaming disruptors like Verizon, Apple and Google, all of which offer an array of options to spice up their service packages.
For example, Verizon is innovating with its +play program, a subscription management platform launched in May with the goal of simplifying the experience of its wireless customers. The +play service offers single sign-on for Disney+, ESPN+ and Hulu. The carrier is also working to ink deals with fitness brand Peloton, meditation app Calm, livestreaming concert startup Veeps and digital sports media company The Athletic.
Bundling offers potential for smaller players, as well. In addition to partnering with the top-tier streamers, smaller providers can also forge their own path to super aggregator status by bulking up their subscription offerings with digital experiences. Partnerships with fitness and health businesses are one option. Others include interactive sports, gambling, gaming and education.
To make bundling a reality, streaming providers need to solve for several key attributes. Many have begun tackling these challenges in an ad hoc way, but by taking a comprehensive approach, they can create a convenient, intuitive experience that stands apart from the industry’s disjointed norm.
The CX that defines a super aggregator includes three key elements:
The traditional bundle may be on its way out, but its successor is already here.
The key to bundling success in 2022 and beyond rests on a comprehensive approach that includes a hub for billing and subscription management, unified search and recommendation, and smart use of data to lower costs and power new business models.
With a new approach to bundling, super aggregators can carve out a competitive path forward for streaming services success.