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Operators must adjust their tariff strategies in order to effectively integrate OTT video into their pay-TV bundles

Martin Scott Principal Analyst, Research

"Evolving OTT competition and careful partnerships will help operators to establish a profitable approach to bundling OTT services alongside pay TV."

OTT video is gaining popularity, and the growth in the number of traditional pay-TV subscriptions is stagnating as a result. Many operators have responded by attempting to bundle OTT services into their core subscription services in the hopes of mitigating cord cutting. Pricing such ‘super-aggregator’ bundles is challenging because there is minimal scope for operators to differentiate on price, and this may limit revenue generation and bundle take-up. This article explores this problem and considers future tariffs and content bundling strategies.