There’s no denying the impact Covid-19 has had on disposable income and unemployment rates, yet we’ve still seen a global trend towards increased OTT subscriptions. According to Amdocs Research, 2020 saw almost 40% of surveyed consumers in the UK and US try a new subscription-based content service.
But with vaccines now arriving and the markets indicating a more bullish 2021, we believe the narrative will shift from the overwhelming options consumers have in the OTT space, to how consumers will again enjoy both in-home and out-of-home experiences, including the return to theatres, stadiums and concert venues. New content offerings with a greater focus on regionalised content, pricing and monetisation strategies, optionality, and unique bundling opportunities will continue to be offered.
In 2021, we’ll also see further alliances, consolidation and various partnership structures continuing to be frothy. We’re seeing new approaches like live virtual concerts from Spotify and Amazon Music bringing musicians front and centre with fans through a partnership with Twitch. Apple has already introduced bundled subscriptions for various offerings, while others like Microsoft have refined their gaming portfolios with partnerships and cloud-based services.
As the consumer-facing environment grows in complexity, tools and platforms that simplify a consumer's means to manage their digital services (whether for digital or physical goods) will be important. The same holds true for subscriptions and commerce activities. Easy-to-use tools integrated across applications, which provide a holistic customer experience, is one example of how service providers can differentiate. The focus must be on making things easier, more accessible and more visible for consumers.