Simplifying Streaming Through Bundles and Personalization

In 2017, 75% of internet households paid for the linear experience of cable television versus only 44% of households today.

Streaming is now the most popular way for consumers of all ages to watch video content. As of 2022, 87% of US internet households subscribe to at least one over-the-top (OTT) service.

Before the boom of OTT services overwhelmed consumers with options, cutting the cord in favor of individual subscriptions simplified the viewing experience and was cheaper than traditional cable TV. This contrasts with today’s consumers who endure subscription fatigue, ever-increasing prices, and confusion over which service currently offers a specific program.

Consumers crave the simplicity provided by the early days of streaming. In the first quarter of 2022, 54% of US internet households subscribed to four or more OTT services, with 20% subscribing to eight or more services.

Both providers and consumers recognize the need for simplification, and bundles are one way to achieve this. Parks Associates survey research finds that 56% of OTT subscribers prefer one bill and one account for home subscription services.

• To the consumer, bundles provide simplicity, value, and convenience.
• To the provider, bundles add value to services, increase long-term ARPU, reduce subscriber churn, and increase customer stickiness.

Consumer expectations of personalized experiences and discovery are higher than ever, with video services and entertainment devices expected to provide user-specific interfaces, search results, viewing recommendations, and advertising. Consumers also personalize their own “service stacks” by subscribing to both large and small services to meet general and niche entertainment needs.

As competition grows and churn rates stay high, interactive entertainment can keep customers engaged longer and, most importantly, keep them on the platform longer. Past behaviors and activity on the platform can also provide intelligent insight that can be leveraged to create a personalized experience tailored to specific interests. This will, in turn, keep customers coming back.

Download our complimentary White Paper “Leaning In: Engaging Viewers with Interactive Video,” in collaboration with Adeia . This white paper covers consumer interest in interactive entertainment and the next generation of video viewing. It discusses various forms of interactive entertainment and includes data about consumer demand and interest in such services. It also discusses the value of live streaming and how interactive services can best be implemented and managed. Download now: https://lnkd.in/g_sp5DmG

Join us for Future of Video 2023! Future of Video: OTT, Pay TV, and Digital Media brings together industry leaders to share insights on new trends in the video and connected entertainment industries, with insights on consumer behaviors and preferences and the challenges for the video industry in meeting these expectations. It features in-depth consumer and industry research on OTT services, content value, and the best strategies for building successful video services for today’s connected consumers. Register now: https://bit.ly/3ITtNYj