when bundling OTT media services: Ovum-Amdocs survey
Carrier-bundled, premium over-the-top media services directly linked to higher consumer loyalty, user acquisition and revenue per user
New Delhi ⎯ Feb. 17, 2020 ⎯ Amdocs (NASDAQ: DOX), a leading provider of software and services to communications and media companies, today announced the findings of a study of over-the-top (OTT) media service markets in Asia Pacific. Among Indian respondents, the research found that carrier-bundled OTT media services make users spend more on their mobile and home broadband bills. They are also among the most likely to remain loyal to a carrier if provided with the right media offer. The survey also revealed that Indians are the most likely in the region to subscribe to multiple paid OTT video streaming services.
Conducted by analyst and consultancy firm Ovum on behalf of Amdocs, the study surveyed almost 4000 consumers in five emerging and developed countries in Asia Pacific, with over half of respondents coming from India. Other countries surveyed included the Philippines, Thailand, Australia and Singapore. The research also included qualitative conversations with 13 communications service providers and 12 OTT media players in the region.
Key findings in India:
- Carrier-bundled media services drive consumers to spend more and maintain loyalty to service providers: 44% of Indian respondents said that bundling media services with their telecom plan was the main reason they were willing to spend more on their mobile and fixed broadband bills. 47% said access to such a service made them less likely to switch providers, while 30% said they might switch in the absence of bundled offers by their current provider.
- Consumers want multiple OTT media service options in their bundle: 56% of Indian digital consumers already subscribe to more than one paid online video service. More than half of these consumers say they subscribe to more than one service to meet the needs of different household members, while 42% said no single service provider offers all the content they want – a reflection, perhaps, of the strong demand for local content in India.
- The pay-per-use model looks more promising for India than monthly subscriptions: 69% of Indians would pay one-time passes for specific content, or short-term access to content, to avoid paying a full subscription. In fact, the average online video subscription (Rs 306) is too expensive for nearly 60% of consumers. The maximum consumers would willingly pay for a monthly online video subscription is: Rs 50-200 (22%); Rs 201-400 (30%); Rs 401-600 (22%); Rs 600-800 (12%); Rs 800 (7%).
- Consumers would willingly share personal data and do not mind ads in return for a discount: 70% would share personal data and accept targeted ads in exchange for a discounted or free service. Not surprisingly, rural respondents (81%) expressed a higher willingness than their urban peers (76%) to share personal data for this benefit.
- Discounting and free trials can hook more consumers: 50% are willing to pay for premium media services via their carrier bill if offered at a discount or with an extended free trial – but only if offered by their existing provider.
“India is one of the hottest markets for OTT media services and carrier-OTT partnerships in the region, registering the strongest retention and user acquisition potential from bundling,” said Guillermo Escofet, Principal Analyst, Ovum. “Service providers who can quickly integrate and on-board multiple OTT media partners, offer innovative bundled plans to meet different consumer segments’ needs and deliver a seamless billing and user experience will be the ones who are most likely to reduce churn and grow profitably.”
“Indian consumers have demonstrated a healthy appetite for premium over-the-top media services, with most already paying for multiple OTT online video streaming services,” said Pankaj Lamba, Customer Business Executive, APAC, Amdocs. “Our research shows that this market is willing to spend even more on their monthly telecom bill in exchange for the right bundle, with the right offer, at the right price point. To deliver this, communications service providers must address OTT partner onboarding and integration challenges while rapidly scale, devise new pricing models for different user segments, and ensure a frictionless end-user experience to ensure successful OTT monetization.”