The Operators must Adjust their Tariff Strategies in Order to Effectively Integrate OTT Video into their Pay-TV Bundles

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.