TV distributors turn to bundling to combat churn
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3 months ago 06:00:33am Television

TV distributors turn to bundling to combat churn

New Delhi, 25-April-2024, By IBW Team

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TV distribution companies are implementing bundling strategies to combat subscriber churn and enhance customer retention amidst industry upheaval. With players like Airtel and Jio offering diverse packages, the aim is to retain subscribers, improve stickiness, and reduce acquisition costs.

In response to the growing prevalence of platform-agnostic content consumption and on-demand viewing, TV broadcast distribution companies are bundling traditional and digital services, according to industry executives, The Economic Times reported.

Traditional TV distribution platforms have witnessed a loss of customers to over-the-top (OTT) platforms in recent years. In 2023 alone, the domestic pay TV industry experienced a loss of two million customers, as per a Ficci-EY report.

Telecom giants Bharti Airtel and Reliance Jio have long been bundling data and content services. Meanwhile, DTH company Tata Play has been bundling linear TV and OTT services, offering subscribers unified billing for both.

Airtel’s Airtel Black plan combines DTH, broadband, and OTT services, contributing significantly to customer stickiness, according to Bharti Airtel CEO Gopal Vittal.

Dish TV has also launched an integrated bouquet, providing both linear TV and OTT content at the same price to curb customer churn and save on acquisition costs.

Dish TV CEO Manoj Dobhal highlighted the initiative’s role in retaining subscribers and reducing churn while potentially lowering capex and aiding in customer acquisition.

Similarly, cable TV operator GTPL Hathway is bundling cable TV services with broadband to enhance customer stickiness and reduce churn. Piyush Pankaj, Chief Strategy Officer of GTPL Hathway, emphasized the convergence of cable TV and broadband services to offer holistic bundles to subscribers, including gaming, OTT, and TV services.

These bundling strategies are expected to not only improve customer retention and reduce churn but also increase average revenue per user (ARPU) and enhance margins for TV distributors.


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