Mobile-first subscribers in Japan, South Korea, and Taiwan are no strangers to bundled services. Now, they’re demanding more.
Building on findings from our USA, Latin America, and Europe reports, the latest installment in the Bango Subscription Wars research series turns the spotlight on East Asia.
Fresh data from 5,000 subscribers across Japan, South Korea, and Taiwan reveals a fiercely competitive landscape where tech-forward telcos have long been pioneers in bundling digital services, offering consumers a convenient all-in-one experience that has become the industry standard.
Against this backdrop, the fragmented and complicated world of subscriptions is thrown into sharp relief. Juggling multiple subscriptions across various platforms has become the norm, but consumers want simplicity.
To tap into the growing appetite for subscription services, local telcos and content providers must continue to innovate with seamless bundled offerings–making Super Bundling an essential strategy. But the region’s readiness for Super Bundling also presents a significant growth opportunity for international content providers seeking to reach new audiences.
We’re calling it now: East Asia is the next hotspot for Super Bundling.
East Asian consumers spend the equivalent of $348 on subscriptions every year
Good news for organizations targeting the East Asian markets: the subscription economy is booming. On average, consumers in Japan, South Korea, and Taiwan manage 3.3 subscriptions, spending $29 per month, or $348 annually. Taiwanese subscribers outpace the regional average, juggling 4.2 subscriptions and paying $35 monthly.
But as the number of subscriptions increases, so too does the cost. Affordability is a crucial concern across the region, with nearly two-thirds (62%) of subscribers saying they can’t afford all the subscriptions they want. Price hikes and password crackdowns further complicate this, creating a demand for more cost-effective solutions.
34% of subscribers exclusively sign up for subscriptions via third-party bundles
Subscribers already familiar with bundling are the ideal target for both telcos and content providers planning to leverage Super Bundling to grow their customer base. In East Asia, more than a third (34%) of subscribers now sign up exclusively via third-party bundles and offers — a figure significantly higher than in the USA, Europe and Latin America. In Japan, this number jumps to nearly 40%, the highest of any country Bango has surveyed.
Subscription control is key to household budgeting
Subscription management has become a focal point for cost-conscious consumers. Almost 60% of subscribers in East Asia say that controlling subscription spending is essential to managing household expenses. Simplification is the key: 64% of subscribers prefer a single app to manage all their subscriptions, a preference that climbs to 71% in South Korea.
If a single app were available, well over half (60%) say they would spend more time using their subscriptions. Half (50%) would sign up for more subscriptions if they could manage everything in one place.
37% would pay more for a Super Bundling service
Interestingly, it appears that subscribers would be ready to pay for a Super Bundling service, despite admitting that they’re unable to afford all of the subscriptions that they want. Our report reveals that 37% of East Asian subscribers would be willing to pay a higher bill if it included a package of popular subscriptions. In South Korea, that figure jumps to 47%.
What’s clear is that East Asian subscribers follow the same trend as those in the USA, LATAM, and Europe – they want to streamline subscription management to better optimize their spending. They don’t necessarily want fewer subscriptions; they want more value out of the ones they already have.
As subscribers become more mindful of their spending, services that are easy to manage, offer deals or discounts, and consolidate multiple platforms into one will prove their value. Our survey shows that more than half (60%) of subscribers would show greater loyalty to a brand offering an all-in-one subscription service, with 58% willing to recommend that brand to others.
Super Bundling is a critical strategy for telcos in subscriber attraction and retention
Super Bundling, a solution consolidating several subscriptions into one platform, is emerging as a vital strategy in the fight for subscriber loyalty. Services like SK Telecom’s T Universe and KDDI’s bundled offerings are already providing subscribers with greater choice, flexibility, and control – and positioning Super Bundling as the next big trend to dominate the subscription economy in the region.
And when it comes to delivering Super Bundling solutions, telco companies have a clear edge in East Asia. Two-thirds (66%) of subscribers say they want their mobile operators to offer Super Bundling packages, a significantly higher demand than in the USA (50%), Europe (46%), or Latin America (55%).
Super Bundling offers telcos and content providers–both domestic and international–a clear opportunity to pave the way forward for the subscription economy in East Asia. By delivering an all-in-one solution, they can meet consumer demands while boosting engagement, loyalty, and revenue.
For a more in-depth analysis of East Asian subscriber trends, download full Subscription Wars: Super Bundling Awakens, East Asia report from Bango here.