Three-fifths of US OTT subs prefer unified bundles
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Editor
| 22 April 2022
In a study examining consumer adoption of over-the-top (OTT) service bundles in the US via a home service provider, Parks Associates has found 59% of such subscribers reported that they prefer one bill and one account for all of their home subscription services.
Parks OTT 22April2022
The Home Service Bundles: OTT as a Value-Added Service study investigated who was offering these bundles, and how these bundles are driving benefits for consumers. It examined uptake of home service bundles with OTT video services, which providers.

In addition to the majority preferring a single bill for all of their services, 48% felt that their home internet service provider added more value when online video services subscriptions were offered. The study also found that 40% of OTT subscribers report that all of their OTT services are bundled through a home service provider. In contrast, just under a third 31% reported that none of their services were bundled through a home service provider.

While some of these consumers opted to keep their video and home services separate, many were simply not aware of the availability of online video service bundled offerings. Word of mouth and recommendations through family and friends were the main avenues for households to discover these bundling options. This meant home service providers can increase adoption, especially among consumers ages 18-44, by encouraging current subscribers to discuss these offerings within their social circle.

“Simplicity has a fundamental appeal to consumers that service providers can leverage. Consumers are seeing value and simplicity in receiving a bundle of channels and services from a single source, and they are increasingly seeking out options that offer OTT services bundled with their home services,” said Parks Associates research director Paul Erickson commenting on the Home Service Bundles: OTT as a Value-Added Service study.

“There is considerable demand for OTT bundles from service providers for the added simplicity, value, and convenience that consumers feel they receive. Verizon’s newly announced Verizon Plus Play, in partnership with Netflix and other services, is an example of service providers serving these consumer demands for simplicity and convenience, via unified subscription management and billing for multiple OTT services. The addition of OTT services to service providers’ subscription and bundled service offerings is a viable way to add value, increase long-term ARPU, reduce subscriber churn, and increase stickiness with consumers.”