OTT And CSP Bundling

Modern media streaming has undergone a massive makeover with the introduction of OTT (Over-The-Top) services like Hulu and Netflix. They have disrupted the way people watch TV and get their quota of entertainment. Interest in these OTT services has especially piqued during the present pandemic with more and more people staying at home. Research by Comscore illustrates that there has been a 28% rise in the use of OTT streaming by households in March 2020 when compared to the last year. That surely is a significant increase in usage.

While this may be perceived as a concern for the traditional providers, it is a golden opportunity for CSP. CSPs can make the strategic move to partner with these OTT providers and offer unique and customized products to their customers. Instead of competing with each other, OTT and CSP companies should join hands to create added value.

Let’s take a look at how OTT and CSP bundles can be a win-win situation for all the parties involved.

COMMUNICATIONS SERVICE PROVIDERS MAINTAIN THEIR REVENUE GENERATION

This partnership offers a one-stop solution for a customer’s entertainment needs. As a result, people are more reluctant to disconnect the services. Moreover, since this allows the traditional service providers to offer a bevy of products like music streaming, gaming, and videos, the average revenue per user also rises. This maintains the cash inflow for the CSPs in the long run.

Additionally, bundling OTT and CSP generates insightful data regarding user behaviors and subscriptions. Proper analysis of this data can help the service providers to fine-tune their strategies and build unfailing brand loyalty.

OTT STREAMING SERVICES EXPAND THEIR REACH

OTT, on the other hand, benefits from the big market footprint offered by the service providers. Bundling the two services allow OTTs to reach out to a larger audience base. They can also position their brand in front of potential customers. This is an excellent marketing tactic. Even customers who would otherwise have never subscribed to an OTT service get exposed to it. In all probability, some of them will opt for a subscription, thus expanding the market reach for the OTT streaming service.

CUSTOMERS GET THE BEST OF BOTH SERVICES

As for the customers, they kind of get the best of both worlds. A bundled product is convenient to buy. People do not have to worry about buying the various services separately, thus saving them time. Moreover, they feel less skeptical about buying OTT when they see that their long time service provider is backing the product.

PROBABLE CHALLENGES

While the bundling of OTT and CSP is a brilliant idea, there are some hurdles that should be successfully handled. These challenges include-

• Since OTTs were not originally built for this collaboration, adjustments will be necessary to integrate the streaming services on the existing operating platforms. However, this can be addressed by making certain changes to infrastructure design and through the usage of third party integration platforms.
• The onboarding processes for the OTT and CSP are separate. However, when a bundle is created, these two processes must be seamlessly combined to provide the customers with a smooth onboarding experience

THE WAY AHEAD

Even with the challenges mentioned above, the benefits to be gained from bundling OTT and CSP far exceed the troubles. Hence, it is in the best interest of both service providers and the OTTs that they come together and forge a partnership path to conduct business in the coming era. With more people relying on digital entertainment, this is a bundle that will surely see a lot of success.

In fact, certain service providers like AT&T and T-Mobile have already considered this approach and are partnering with OTT providers like Netflix and Spotify. But there is a lot of scope of expansion in this market.

At Intraway, we constantly strive to provide our valued customers with viable telecom solutions that help scale up their business while delivering quality customer experiences to millions. Contact us today to learn more about our offerings and how we can help you with your specific needs.