The Rise of the Subscription Economy
The global subscription market is projected to balloon 81% by 2026, reaching a value of $599 billion according to Juniper Research. The average consumer holds over 5 subscriptions for services like video streaming, music, food deliveries, and more.
As subscriptions proliferate, 78% of consumers in a Bango survey want a unified platform to conveniently manage all their subscriptions. Telcos with their vast household reach are primed to capitalize on this opportunity.
Early Movers: Verizon and Optus
Verizon launched its +play subscription hub last year, consolidating major services like Netflix, Peloton, and Discovery+ into one simplified management platform. Optus in Australia provides a similar offering called SubHub.
These telcos can easily onboard partners using solutions from companies like Bango that handle the technical integrations and standardize commercial agreements. This avoids costly one-off merchant integrations.
Why Telcos Are Positioned to Win As Subscription Hubs
Telcos stand to gain several advantages by bundling subscriptions:
- Increased subscriber retention and lifetime value
- Additional recurring revenue streams
- Customer insights to inform personalized bundles
Consumers also benefit through discounted bundles and simplified subscription management.
But telcos face potential competition from banks, retailers, and others who could offer their own hubs. However, telcos possess unparalleled household reach and insights into usage behaviors to drive relevant bundles. Their integrated billing also enables frictionless signup.
Unlocking Targeting Opportunities
As the central subscription platform, telcos gain rich data on customers spanning entertainment, software, IoT devices, and more. These insights enable better targeted and personalized advertising not available to individual services.
For example, premium broadband subscribers may be flagged as interested in gaming subscriptions and related ads. The rise of unified subscription hubs via telcos ushers in an era of convenience for consumers and expanded monetization for partners. Those able to perfect this model will strengthen engagement, differentiation, and revenues.