law and gives clear guidance , will be different to the approach in the UK . Public Service Broadcasters ( PSBs ) like the BBC have a longstanding relationship with the viewing public in the UK . In the US , a Subscription provider can reach audiences with similar content reach as TV networks and cable companies .” RE-BUNDLING . As to whether content providers would welcome re-bundling , he says that over the past five years , we have observed breakdowns in content aggregation by pay-TV operators in certain countries , and we have also witnessed the beginning of re-aggregation . “ The bi-annual Futuresource Living with Digital survey demonstrates the growing number of subscribers across different countries and services accessing content via a pay-TV package ,” he advises . “ This isn ’ t necessarily due to lower subscription costs , but rather ease of user access . It ’ s important to make the consumer journey and transition across content as simple as possible . Content providers aim to get their audience to spend as much time as possible within their ecosystem . That way , they gain plenty more opportunities for further monetisation ,” he concludes .
“ Content providers should welcome rebundling because this will ensure audiences of scale ,” adds Omdia ’ s Gunnarsson . “ Currently , audiences are fragmented and the fast pace of producing content to attract customers to separate streaming services is not sustainable .”
“ Yes , they certainly would ,” asserts Shy Shriqui , executive VP , global sales and solutions at Vubiquity , an Amdocs company . “ In the first wave of re-bundling , content providers played a passive role , as the initiative was driven by distributors like telcos and pay-TV . However , they are now taking the lead , as demonstrated by the new bundle launch this summer featuring Disney +, Hulu , and Max . There are two primary reasons why content providers are promoting ‘ OTT- Controlled ’ bundles : first , to reduce churn , as bundles are highly effective in retaining customers ; and second , to optimise ad sales and aggregation across their new ad-supported offerings , making them more efficient and profitable ,” he suggests . CONSOLIDATION . As to how likely consolidation is among regional and global SVoDs , Futuresource ’ s Duvall , says that partnerships as opposed to consolidation are likely to be seen more and more . “ Partnerships have always been a key part of growing content reach , as we ’ ve seen with the unification of global players under SkyShowtime and Apple TV + providing its content freely to subscribers of a Canal + plan within France . Not every market can sustain all global and local providers . As profitability continues to become more of a focus over subscriber acquisition , it is expected that new and emerging partnerships will be seen at the local country level .”
“ Partly , this is already on-going ,” says Gunnarson , noting Canal +’ s investment in Scandinavia ’ s Viaplay , Africa ’ s Showmax and Asia ’ s Viu , as well as Paramount Global ’ s decision to enter into a joint venture with Comcast / Sky in SkyShowtime for Central Europe .
“ It ’ s uncertain ,” adds Vubiquity ’ s Shriqui . “ While we have seen some vertical consolidation in certain markets — such as local video streaming services merging with local music streaming services — and we know that some major content providers are exploring consolidation , I have yet to see a clear strategic push towards it . However , I suspect that 2025 could bring significant changes to the content distribution landscape , particularly in the US , where studios face big questions regarding their linear distribution strategies .” AGGREGATORS . As to the future role of operator aggregators , Duvall admits that the pay-TV sector has been acting as an aggregator for decades . “ Because of its large audience reach and the revenue generated from consumers and advertising , it is unlikely that it will disappear quietly . The role of the aggregator will persist , but the form it takes in the future may be different from what we are familiar with today .”
“ Sport is a big consideration in the battle for audience time and money . Over 40 per cent of those in the UK , Italy and Australia with a pay-TV package also subscribe additionally to sports . Unless subscription services dramatically pivot away from just buying into limited packages , then an aggregator will continue to bring together sport alongside wider TV and movie content ,” he predicts .
“ Aggregators aren ’ t just about encouraging streaming services onto their platform , but also ensuring the broadest array of content is available to viewers . This means free Ad-based video on-demand ( AVoD ) services and FAST channels are now competing . In the US , 37 per cent of AVoD monthly active users go straight to one of these channels ahead of checking their subscription service or regular TV ,” he advises .
“ Operators have tried to take a more handson approach to curating third-party SVoD services and enabling customer access via operator STBs , etc ., but by and large the role has so far been that of distributors pure and simple ,” says Gunnarsson . “ Operators will probably not give up on the dream of becoming the natural home for third-party streaming services , which means they will continue to invest in TV and video innovation on platforms , both virtual and operator owned devices – with things like nextgen unified search , subscription management etc .”
“ Alternatively , operators may opt to abandon SVoD aggregation altogether – bear in
“ Partnerships have always been part of growing content reach , as we ’ ve seen with the unification of global players .” – James Duvall , Futuresource Consulting
mind that ten to fifteen years ago they used to bundle Sony PlayStations and flatscreen TVs , perhaps SVoD is only a temporary avenue for them . For now , Omdia ’ s latest analysis of operator bundling of SVoD suggests that
streaming is likely to remain a predominantly standalone and direct-to-consumer business , with operator bundles making up just a fifth of streaming today and unlikely to grow beyond a quarter for the foreseeable future .”
“ In my opinion , operators are in the best position to partner with content providers and offer targeted bundles to their customers ,” asserts Shriqui . “ They possess deep knowledge of their local markets and audiences . To create customer stickiness with their connectivity services , operators have a unique ability to develop segmented offerings .”
“ Currently , we see various bundling options , from soft bundles ( where customers can create their own bundle from a selection of services and receive discounts ) to hard bundles that combine multiple subscription services ( such as a video service + a music or gaming service + a security or lifestyle service ), and of course , the classic but powerful bundle of subscription services with connectivity access ( Mobile or Broadband plans ). I also strongly believe in Skinny Bundles , which blend a limited number of linear channels ( a mix of local and FAST channels ) with hypertargeted subscription services . These Skinny Bundles , curated for specific demographics or targeted segments , will likely be a focus for telcos and pay-TV distributors ,” he suggests . DISCOVERY . As to the role content discovery can play in easing the consumer experience across a range of subscription services , Duvall says that when it comes to why subscribers
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