The latest Omdia analysis reveals 365 million video on demand (SVOD) subscriptions will be distributed through operator TV, broadband, and mobile bundles by the end of 2024, representing 20 percent of the global streaming market.
By 2029, SVOD bundling is projected to account for 540 million subscriptions, or 25 percent of the global streaming business.
This latest forecast, based on 2,000 live telco and online video distribution partnerships, indicates that bundling will drive significant growth in the SVOD market.
In mature markets like the US and UK, direct-to-consumer (D2C) streaming subscriptions are expected to decline as customers increasingly opt for bundled services offered by telecom operators. Bundling is set to become a key growth engine for SVOD, especially as D2C subscriptions face year-on-year decline in these regions.
For instance, AT&T is offering AT&T Fiber internet (300Mbps) and DirecTV Choice package for $139.99 per month.
The price of AT&T Fiber (300Mbps) and DirecTV Entertainment package is $124.99 per month.
Verizon is offering Disney+, Hulu, and ESPN+ with the Disney Bundle ensuring that customer are getting the best movies, shows and sports for $21.99 per month.
T-Mobile is offering Hulu (with Ads) as part of Go5G Next package.
Vodafone UK is offering Airtime Plan with Amazon Prime or YouTube Premium.
In developing markets, such as Brazil, Mexico, and South Africa, SVOD bundles will be instrumental in expanding access to premium video services.
Claro Columbia is offering Amazon Prime video package to boost its revenue.
Airtel India is offering Disney+ Hotstar, Amazon Prime Video and others as part of bundle subscription with their Xstream DTH connection.
Omdia forecasts that by 2029, more than half of all SVOD subscriptions in these regions will be bundled with telecom services. Certain regions, like the Middle East, will see all online video growth driven solely by telco partnerships, leading to declines in D2C subscriptions.
Telco bundling is expected to complement, rather than overtake, D2C models. Omdia projects an average of 40 million new bundled subscriptions annually through 2029, but with the global SVOD market expected to surpass 2 billion subscriptions, D2C will remain the dominant acquisition method.
Video bundling partially satisfies customer demand for integrated streaming services, but it lacks the comprehensive platform that customers desire.
Tony Gunnarsson, Principal Analyst at Omdia, said: “The TV and video industry has collectively failed to create a unified platform for customers to access multiple streaming services with a single monthly bill.”
While hybrid ad-supported tiers are expected to drive much of SVOD’s growth through 2029, bundling will remain a common but secondary channel for streaming. Tony Gunnarsson warned that without industry-wide cooperation on bundling and aggregation, there is a risk of losing customers to free alternatives or even a resurgence in piracy.
Baburajan Kizhakedath