Super Aggregation and Skinny Bundles: Customer Retention and Acquisition in the Age of Cord Cutting

The era of cord cutting continues to redefine how consumers access their favorite content, presenting both challenges and opportunities for broadcast executives, telecommunications companies (Telcos), PayTV providers, OTT services, and streaming platforms.

Pay TV continues its decline while a growing number of consumers migrate to OTT services and streaming platforms. However, subscription fatigue is increasingly common as users juggle multiple subscriptions, each requiring separate logins and payments. The financial expense, paired with the hassle of switching between the platforms of the global streaming giants, frustrates consumers.

It’s safe to say that the migration is at an inflection point. The fatigue, coupled with the reluctance to remain tied to non-flexible Pay TV packages, is driving the industry to transform and introduce a new consumer experience, and that experience is clear.

A single destination where consumers have easy access and the flexibility to manage their preferred subscriptions and channels.

The market opportunity is far too large to ignore the cry of the consumers. The global video streaming market size accounted for USD 129.80 billion in 2024 and is predicted to reach around USD 865.85 billion by 2034, growing at a solid compound annual growth rate (CAGR) of 20.90% from 2024 to 2034, according to Precedence Research. The North American video streaming market size reached USD 34.19 billion in 2023. These statistics reveal the scale of the global opportunity.

Telcos, PayTV, OTT services, and streaming platforms must adapt and evolve their business and operational models to not only retain existing customers, but to attract new ones. The decisions they make around transformation will determine whether they grow or contract their subscription business.

Streamlined streaming: the power of convenience

Convenience is paramount when it comes to reducing subscription fatigue. Customers are easily overwhelmed by the painful experience of subscription management and delivery across multiple services. The consequence of which is often  indecision and lack of action. The goal is to reduce the complexity of the entire experience. The audience simply wants to easily find and watch a variety of quality content, which is not always as easy as it may sound.

Take the example of the show “Manifest.” While Netflix has the rights to stream seasons one, two and four, in the UK season three is not on Netflix due to licensing restrictions. To watch season 3, consumers have to also subscribe to SkyGo or NowTV. This is not exactly the seamless experience that binge watchers want. In fact, a study by CordCutting.com found that convenience, alongside cost and content, is one of the top three priorities for consumers when choosing or switching streaming platforms.

A single marketplace that manages all subscriptions dramatically enhances the user experience. Features like self-care for subscriptions, unified interfaces for content discovery, and streamlined subscription management play a significant role in achieving this convenience. By providing a centralized platform where users can manage all their subscriptions effortlessly, Telcos can ensure a smoother, more enjoyable viewing experience for their often fickle customers.

Coupled with Amdocs’ findings that consumers expect improved experiences with increased costs, these statistics demonstrate a need to provide better experiences to retain customers.

Keep the stream flowing to boost retention and maximize revenue

The bundle game is often the best option to reduce churn. According to Forbes, 44% of respondents admit to subscribing to a service solely to watch a single favorite show. Take the example of the popular “The Mandalorian” on Disney+. When the season finishes, many subscribers could be tempted to cancel then resubscribe once the new season starts. But if the Disney+ subscription is combined with a mobile or broadband plan or perhaps Spotify, viewers are less likely to cancel as they need continued access to their mobile, internet, and favorite music.

Vubiquity addresses these challenges through its Subscription Marketplace Suite, a super aggregation and subscription bundling solution. This super aggregation allows Telco operators to bundle over-the-top (OTT) streaming services, live linear, and other digital subscription services like gaming, music, lifestyle or other apps, to create a rich and personalized experience for their subscribers. Flexible bundle options include precisely curated “skinny bundles” designed around consumers’ viewing habits, providing a fresh approach to the Pay TV model. Skinny bundles are targeted, cost-effective packages like Now TV in the US or TV+ from Canal+ in France that offer essential channels at a lower cost, often without a contract, making them attractive to budget-conscious consumers.

This structure offers a compact package of subscriptions with optional add-ons, blending direct distribution (Linear and On-Demand) with OTT Direct-to-Consumer Apps, thereby leading to a more affordable and targeted offering. The versatility of business models, from Ad-supported freemium to paid subscriptions with all the advanced add-ons and bundling options, helps service providers reach the largest addressable market.

Adding to its client-centric philosophy, Vubiquity’s platform incorporates a suite of integration layers that streamlines the viewer’s journey. With modules dedicated to the Partner’s onboarding and aggregation, Commerce and Subscription Management, and Experience Management across all the distribution channels (Marketplace and Applications), this modular solution handles the end-to-end value chain of aggregation and offers to consumers a single place to discover, subscribe, and access their digital media services and content.

The platform’s à la carte capabilities pave the way for major upsell opportunities and helps Telcos and PayTV providers to transform their offering around media and digital value-added services. In essence, Vubiquity’s solution is a unified and curated experience for consumers. It delivers a more engaging viewing experience and promotes stronger customer retention for telecommunications companies, proving a win-win solution for the modern Pay TV conundrum.

Dialing into data: unlocking the value in Telco insights

Telcos hold a unique position with access to extensive user data, allowing them to better identify and categorize customers into segments based on their usage patterns, spending, revenue, products, services, demographics, and behavior. From there, customized marketing strategies and promotions can be created for each segment to maximize effectiveness.

By leveraging this data, Telcos are in the best position to create better vendor packages and offerings, providing more personalized and appealing services to their customers. For example, they are well suited to offer hyper-segmented skinny bundles for specific markets like Latinx audiences and/or sports fans, etc.  Collecting additional data helps Telcos understand user preferences and demographics, further enhancing their ability to tailor their services to meet the specific needs of their audience. Large Telcos collect and manage vast amounts of data, much of it related to customer interactions, network performance, and service usage. They have access to significantly more information on their users than any OTT.

Binge-worthy strategies: the role of AI in personalized curation

Has a streaming service ever suggested that you “continue watching” and you thought “that is the graveyard of things that I never want to watch again?” If so, you understand the importance of personalized recommendations. And you are not the only one. According to Google Cloud, a whopping 81% of viewers expect streaming services to provide highly personalized experiences.

Artificial Intelligence (AI) has the potential to revolutionize the way Telcos create personalized bundle suggestions and improve content discovery. AI can help promote relevant services and bundles to different customer segments, ensuring that recommendations align with their interests and preferences.

According to Nielsen, 68% of respondents are at least somewhat likely to buy a product if a brand engages with the consumer in a personalized way across channels. By analyzing behaviors, location data, and contextual information, AI algorithms will deliver customized service bundles, content recommendations, and pricing plans. The future vision of AI-assisted curation in the media industry involves creating highly personalized and engaging experiences for users, driving customer satisfaction and loyalty. AI can improve performance, engage customers, cut costs, and lay the groundwork for additional automation.

A better path for merchants and OTT services

A survey by Deloitte found that 57% of consumers prefer bundled subscriptions over individual services due to cost savings and convenience. This demand creates significant benefits for all OTTs, both small and large, that join a unified platform. Offering more targeted bundling options for subscribers reduces the likelihood of unsubscribing, thereby mitigating subscription churn. With Vubiquity managing the integration with Telcos on a global scale, subscription services can significantly reduce their marketing efforts aimed at retaining subscribers. This also eliminates the technical challenges associated with integrating with multiple Telcos, allowing Merchants to address untouched or low-touched markets by facilitating their integration with local telcos for distributing services in specific markets.

Vubiquity’s solution provides a unified and curated experience for consumers, enhancing their viewing experience and promoting stronger customer retention. This win-win solution addresses the modern Pay TV conundrum, enabling Telcos and OTTs to retain customers while adapting to the evolving media landscape.

Making streaming effortless for your audience

Enhancing customer experience through convenience, offering flexible bundling options, leveraging extensive user data, utilizing AI for personalized curation, and providing a unified platform for OTT services are essential strategies for Telcos to remain competitive. By adopting these strategies, Telcos and PayTV providers can effectively retain existing customers and attract new ones, ensuring their long-term success in the evolving media landscape.

In the age of cord-cutting, customer retention and acquisition strategies are more important than ever. Super aggregation and flexible bundling offer effective solutions to modern media challenges, providing a unified and convenient experience for consumers.

Ready to transform your customer retention and acquisition strategies? Book an IBC meeting with Vubiquity to learn more about implementing these cutting-edge solutions. Sign up for a consultation or demo to discover how our solutions can help your organization thrive in the age of cord-cutting.