How Telcos Can Win with Digital Content Bundling – The Aggregator Model Explained

Telcos can no longer compete solely by offering more data. To conquer this new frontier, they must differentiate elsewhere. Increasingly, telcos are embracing the role of digital content aggregator, where mobile customers, OTT delivery, and eSIM technology converge to create leadership opportunities in this evolving digital space.

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Why Telcos Are Embracing Digital Content Bundling

The telecommunications industry has increasingly adopted digital content bundling strategies to enhance customer satisfaction, reduce churn rates, and stay competitive. A Sage Open research study of 3,004 customers of a Portuguese telco utilizing bundled services indicated that a bundled approach can deliver higher customer satisfaction and loyalty. They found a significant increase in perceived value from bundled telecom services, boosting overall customer experience and reducing the likelihood that customers will switch providers.

A Bango study of 100+ executives from top content providers reveals that 81% see bundling as the future of subscriptions. This model, known as "Super Bundling," is already being implemented by telcos like Verizon with its +play platform, which consolidates services such as Netflix, Disney+, and HBO Max. 

Beyond the increased customer satisfaction from a bundled plan, a ResearchGate evaluation suggests that bundling is a natural evolution of technological advancement, with telecom bundles resulting in better service delivery at a lower net cost to the consumer.

Market shifts are pushing telcos into digital content aggregation, driving the "streaming wars." In late 2023, Verizon launched a $10 bundle for Netflix, Warner Bros Max, and Discovery Max – a 40% savings to the customer – along with a $20 plan featuring Disney+, ESPN+, Netflix, and Max. Mark Boidman, head of media at Solomon Partners, suggested, "Everybody’s trying to come up with something proprietary." From a bundling perspective, "All of these companies need to work together to create stickiness amongst their consumers."

These studies and telecom company bundling moves signal the growing importance of digital content bundling as a strategy for telcos to improve customer satisfaction, reduce churn, and ensure competitiveness in a rapidly evolving market.

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How Top Telcos Are Using Content Bundling – Real-World Examples

Telcos worldwide are increasingly integrating digital content bundling into their subscription packages. Here are some key examples:

• United States: Verizon’s +Play platform serves as a content hub for bundling services like Netflix, Disney+, and Max. T-Mobile’s "On Us" Go5G plan includes Hulu, Netflix, and AppleTV+.

• Europe: Vodafone offers Amazon Prime, Disney+, or YouTube Premium in its SIM-only plans. British Telecom’s newly rebranded EE Mobile includes Apple One Individual (Apple Music, Apple TV+, Apple Arcade, 50GB iCloud), unlimited data, and roaming benefits.

• Asia-Pacific: Australia’s Optus SubHub allows customers to manage multiple subscriptions under a single Optus account, with discounts for multiple services. In India, Jio bundles Netflix, Disney+ Hotstar, and Amazon Prime Video with its postpaid mobile plans.

Many legacy telcos have begun bundling OTT TV streaming services with fiber and mobile service plans. Others are exploring subscription plans beyond TV streaming, adding value-added services. This trend will grow as competition increases and tech systems evolve, allowing forward-thinking telco leaders to differentiate their services, increase customer loyalty, and capitalize on the rising demand for digital streaming services.

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Key Tech Challenges for Telcos in Content Bundling

Handling multiple subscription services involves complex sign-ups, billing, and partner negotiations. Key challenges include:

• Platform Integration & API Management: Seamless integration with content provider APIs for authentication and access control.

• Billing and Payment Complexities: Consolidating multiple subscriptions into a single bill while managing different billing cycles, revenue sharing, and regional tax variations.

• Customer Experience & Support: Ensuring frictionless service across mobile, broadband, and TV, while managing support for third-party content issues.

• Content Rights & Regional Licensing: Addressing regulatory restrictions, geoblocking, and licensing compliance across different markets.

• Scalability & Network Performance: Managing increased bandwidth demand from video streaming while maintaining optimal network performance.

• Security & Fraud Prevention: Preventing credential sharing, ensuring compliance with GDPR, CCPA, and securing payment processing.

• Data Analytics & Personalization: Leveraging AI to optimize bundling offers and enhance customer experience through targeted recommendations.

• Partner Relationship Management: Negotiating content provider contracts and adapting to evolving licensing terms.

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FAQs: Telcos & Digital Content Bundling

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🔹 Why are telcos bundling digital content?

Telcos use content bundling to increase customer loyalty, reduce churn, and create new revenue streams by integrating OTT services like Netflix, Disney+, and Spotify.

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🔹 What are the benefits of content bundling for telecom companies?

Bundling enhances customer experience, improves perceived value, and helps telcos differentiate in a competitive market.

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🔹 How does digital content aggregation help reduce churn?

When customers subscribe to multiple services through their telco, they are less likely to switch providers due to the convenience of an all-in-one billing and subscription management experience.

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🔹 What are the top telcos using bundling strategies?

Companies like Verizon (+Play), T-Mobile (On Us), Vodafone, Optus, and Jio are leading the way with integrated content bundles.

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Conclusion

While bundling digital content enhances customer value, telcos must overcome significant technical, operational, and regulatory hurdles. A robust technology stack, strong API integrations, and advanced customer analytics are essential for a successful aggregation strategy.

triPica’s BSS platform is uniquely designed to address many of the challenges facing telcos looking to expand into the content subscription space, launch a telco brand targeting digital-savvy customers, or introduce a new digital telco service.

Looking to launch a successful telco content bundling strategy?  

triPica’s BSS platform simplifies integration and growth.  

Contact us today.

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