New analysis from Omdia reveals that 365 million subscription video on demand (SVOD) subscriptions will be distributed via operator TV, broadband, and mobile bundles by 2024, representing 20% of the global streaming market. By 2029, this figure is projected to rise to 540 million subscriptions, accounting for 25% of the market.
Omdia’s comprehensive study assesses the telco bundling landscape for popular streaming services, based on insights from 2,000 active telco and online video distribution partnerships worldwide. The analysis highlights a significant trend: in mature markets like the US and UK, the growth of direct-to-consumer (D2C) subscriptions is expected to decelerate as consumers increasingly gravitate towards bundled offerings.
As the bundling trend accelerates, it will negatively impact the D2C segment, leading to year-on-year declines in these markets. In contrast, developing regions such as Brazil, Mexico, and South Africa will see over half of all SVOD subscriptions bundled, with telco arrangements becoming crucial for premium online video service uptake.
Omdia estimates that telco bundles will contribute an average of 40 million new subscriptions annually until 2029. However, with global SVOD subscriptions projected to exceed 2 billion by that time, bundling is expected to remain a complementary channel rather than a replacement for D2C acquisition methods.
Tony Gunnarsson, Principal Analyst at Omdia, noted the ongoing frustrations consumers face with the fragmented streaming landscape. “Customers are overwhelmed by options yet struggle to find the right content. The TV and video industry must create a unified platform that aggregates multiple services under one bill,” he stated.
While telco bundling has alleviated some consumer challenges by offering aggregated services, Omdia’s analysis indicates that D2C models will continue to dominate the streaming subscription market for the foreseeable future. The emergence of hybrid ad-supported tiers on major streaming platforms is expected to be the primary growth driver for SVOD through 2029.
Gunnarsson emphasized the need for the industry to address the complexities of bundling and aggregation to prevent losing customers to free alternatives or a resurgence of piracy. “Without a collaborative effort to simplify the streaming experience, the industry risks alienating its audience.”
