Bundle up: 81% of subscription leaders say bundling is the future for their industry

Rhea-AI Summary

Bango: 'Super Bundling' Strategy to Boost Subscription Services. New Bango research reveals that subscription leaders are focusing on 'Super Bundling' as a key growth strategy. This model integrates subscriptions through a centralized content hub, offering a strong competitive advantage and revenue source. Subscription providers aim to reduce churn and amplify customer acquisition through cross-industry bundling, with telcos playing a crucial role. However, there are challenges in technical integration and partner management. Bango's Digital Vending Machine (DVM) is positioned to address these challenges, providing a subscription bundling SaaS platform for seamless Super Bundling implementation.

Positive

• Subscription leaders are betting on 'Super Bundling' as a future growth strategy
• Over 2/3 of executives prioritize new customer acquisition and reducing churn through Super Bundling
• Super Bundling is expected to be a vital revenue source and offer a strong competitive advantage for subscription services
• Telcos are crucial partners for Super Bundling, with communications service providers dominating as bundling partners

Negative

• Challenges in technical integration and partner management for Super Bundling
• Complexity and cost of building a unified user experience for multiple vendor subscriptions

‘Super Bundling’ gains momentum as subscription services aim to amplify customer acquisition and reduce churn

CAMBRIDGE, United Kingdom, Nov. 16, 2023 (GLOBE NEWSWIRE) -- New Bango research reveals subscription leaders are betting on cross-industry bundling as the future for their fast-growing industry. The research highlights a focus on ‘Super Bundling’ — a model that provides integrated management of subscriptions through a centralized content hub, delivered through aggregators like telcos.

With data from over 100 executives across leading music, video, and multi-service content providers, the study shows widespread endorsement of the Super Bundling model. This model is already a key growth strategy with telcos, as exemplified by offerings such as Optus SubHub and Verizon +play content hub, which bring together dozens of subscription services.

Explaining the rationale behind the subscription industry’s push towards Super Bundling, over two-thirds of subscription leaders say ‘new customer acquisition’ (73%) is a high priority, closely followed by ‘reducing churn’ (68%).

The road ahead

The research shows that subscription providers have identified several key opportunities in Super Bundling, while emphasizing that time is of the essence.

More than three out of five subscription leaders agree that:

• Subscription services should be bundling their services with content providers from other industries (69%)
• Super Bundling content hubs will be a vital revenue source for subscription services in the future (66%)
• Super Bundling content hubs will offer a strong competitive advantage for subscription services (65%)
  

Over half of these executives (53%) already say Super Bundling will play a vital role in their future customer acquisition and retention strategies. Some go as far to say that not pursuing Super Bundling could be damaging, with almost a third (31%) warning of potential revenue and market share loss for those that don’t adapt quickly enough.

When deciding who to select as their bundling partners, communications service providers dominate, with 60% of subscription leaders citing satellite/cable providers as most effective, followed by broadband (56%) and cell phone companies (56%).

Technical roadblocks

While keenly aware of the opportunities of Super Bundling, subscription leaders also point to challenges implementing the model. Three out of five (61%) report that their core challenge when bundling subscriptions is the complexity of managing multiple partners.

When trying to achieve this through reseller partners such as telcos, more than half report that the top challenges they face in partnering effectively are:

• Technical integration issues (64%)
• Complexity of contract negotiations (63%)
• Time-consuming onboarding processes (52%)
  

Back to the future

To overcome the technical challenges of Super Bundling, subscription services need access to specialized technology and infrastructure. Even for those who have the basic tools required to support bundling, building a unified user experience that brings together multiple vendor subscriptions can be complex and costly.

"This is where the Bango Digital Vending Machine® (DVM) meets a critical need," says Bango CMO and co-founder Anil Malhotra. "Tackling the complexities of sign-up, billing, partnerships and subscription management is no small feat, but we’ve got you covered.

"The Bango DVM, a subscription bundling SaaS platform, handles the heavy lifting of Super Bundling, providing the infrastructure to bring together aggregators like telcos with diverse content and service providers through one unified hub. This allows subscription providers to focus on what they do best - delivering excellent content experiences to their subscribers."

To learn more about Super Bundling and the future of subscription services, download the full report here.

About Bango
The Bango Digital Vending Machine® provides everything you need for subscription bundling and payments, enabling you to quickly reach new customers and markets. Connect once for a standard system of tools used for customer acquisition, payments and subscriptions, and join an ecosystem of over 150 content providers and resellers already connected to the Bango platform. Trusted by leading technology companies including Amazon, Google and Microsoft. For more information, visit www.bango.com.

Media contact
Luke Proctor / Tina Sang
Wildfire
bangoresale@wildfirepr.com

FAQ

What is the future growth strategy for subscription services?

Subscription leaders are focusing on 'Super Bundling,' a model that integrates subscriptions through a centralized content hub to reduce churn and amplify customer acquisition.

Who are the key partners for Super Bundling?

Telcos and communications service providers, such as satellite/cable, broadband, and cell phone companies, are crucial partners for Super Bundling.

What challenges do subscription leaders face in implementing Super Bundling?

Subscription leaders face challenges in technical integration, partner management, and building a unified user experience for multiple vendor subscriptions.

How does Bango address the challenges of Super Bundling?

Bango's Digital Vending Machine (DVM) provides a subscription bundling SaaS platform, handling the complexities of Super Bundling, including sign-up, billing, partnerships, and subscription management.