Bundling hotspot: Over a third of subscriptions in East Asia sold through indirect channels
02 10월 2024 - 11:00PM
More than a third (34%) of subscribers in East Asia now sign up to
services exclusively via third-party bundles and offers — a growing
trend of bundling that is already significantly higher than in the
USA (20%), Latin America (21%), or even Europe (30%). In Japan,
nearly 40% of subscribers are going indirect, the highest of any
country Bango (LSE: BGO.L) has surveyed. That’s according to a
survey from Bango of 5,000 subscribers across Japan, South Korea,
and Taiwan.
As Western subscription services look to expand internationally,
East Asia represents a market full of growth opportunities. The
subscription economy there is thriving, with subscribers now
juggling an average of 3.3 subscriptions per person and spending on
average $29 each month ($348 per year) across video, music, gaming,
retail and more. This figure is even higher in Taiwan, where
subscribers manage 4.2 subscriptions and spend $35 monthly — driven
in part by Taiwan’s strong gaming culture, where nearly half (42%)
of subscribers pay for a gaming service, compared with only 25% in
the USA.
However, for content providers eyeing expansion into the region,
it’s important to recognize that content needs to be culturally
relevant and localized. Bango found that 70% of East Asian
subscribers prefer services that offer content in their native
language.
This presents a significant opportunity for international
content providers to tailor their offerings and capture new
audiences in a rapidly evolving market.
Subscription Hubs and ‘Super Bundling’
As the market continues to grow, East Asian subscribers are also
looking for ways to simplify their subscription management. Almost
two thirds (64%) of subscribers want a single app to manage all
their subscriptions and accounts — rising as high as 71% in South
Korea. If such an app were available, well over half (60%) of
subscribers say they would spend more time using their
subscriptions, and half (50%) would sign up for more if they could
manage everything in one place.
Super Bundling — consolidating all subscriptions into one
manageable content hub — is emerging as the best solution to
subscriber demands. Services like SK Telecom’s T Universe and AU by
KDDI’s bundle offerings are already paving the way for this shift
in East Asia. These platforms — similar to Verizon +play in the US
— provide subscribers with more choice, flexibility, and control
over their services, significantly simplifying management and
improving the overall user experience.
Unlocking new growth
By enabling users to manage all their services in one place,
Super Bundling can drive higher engagement, increase service
uptake, and boost overall satisfaction. The Bango report highlights
that over a third (37%) of East Asian subscribers would be willing
to pay a higher bill if it included a package of popular
subscriptions, with this number rising as high as 47% in South
Korea.
More than half (60%) of subscribers would show greater loyalty
to a brand offering an all-in-one subscription service, and 58%
would recommend the brand to others. Better financial management is
the standout benefit for East Asian subscribers, with 62% believing
they would better manage household expenses if this service became
available.
When it comes to providing Super Bundling, East Asia has a clear
preference for telco companies: two-thirds (66%) want their mobile
operator to offer Super Bundling packages. This demand is much
higher than in the USA (50%), Europe (46%), or Latin America
(55%).
Andy Suzuki, SVP APAC at Bango, said, “The subscription economy
in East Asia continues to evolve and diversify through an
ever-growing number of services available to consumers, providing a
significant opportunity for global players.
With demand for localized content and streamlined subscription
management, Super Bundling offers a clear path forward for
international businesses. By working with local telcos and
tailoring services to consumer preferences, content providers can
unlock new revenue streams and build lasting consumer loyalty.”
To find out more East Asian subscriber trends, download Bango’s
full Subscription Wars: Super Bundling Awakens, East Asia report
here.
About Bango Bango enables content providers to
reach more paying customers through global partnerships. Bango
revolutionized the monetization of digital content and services, by
opening-up online payments to mobile phone users worldwide. Today,
the Digital Vending Machine® is driving the rapid growth of the
subscriptions economy, powering choice and control for
subscribers.
The world's largest content providers, including Amazon, Google
and Microsoft, trust Bango technology to reach subscribers
everywhere.
Bango, where people subscribe. For more information, visit
www.bango.com
Media contactHenry Soundy / Trisha
BahlWildfirebango@wildfirepr.com
Bango (LSE:BGO)
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