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An analysis of Ovum’s recently published Telco–OTT Music Bundling Revenue Forecast: 2017–22, which puts a value on the proportion of music subscription revenue that is transacted via bundling deals between OTT streaming providers and CSPs.


  • Ovum predicts that revenue derived from bundling deals struck between communication service providers and OTT music subscription services will grow from $2.09bn globally in 2017 to $3.86bn in 2022.
  • However, as a percentage of total music subscription revenue, music bundling peaked in 2015 and has declined steeply since – from just over 31% in 2015 to just over 21% this year, and set to drop to just under 18% in 2022.
  • Western Europe will remain the biggest source of telco–OTT music bundling revenue, but emerging markets are taking an ever-greater share, driven by low levels of financial inclusion and consumer resistance to pay for digital content.

Features and Benefits

  • Find out what factors are reducing telco–OTT bundling’s share of global music subscription revenue.
  • Find out in which regions bundling will play the biggest role.

Key questions answered

  • What are the factors behind the reduction of telco–OTT bundling’s share of global music subscription revenue?
  • In which regions will bundling play the biggest role?

Table of contents


  • In brief
  • Ovum view
  • Recommendations

Revenue from music bundling continues to grow, but has peaked as a share of total music revenue

  • Loss of momentum
  • Growing preference for soft bundles
  • Fewer users…
  • …but better quality
  • Commercial differences
  • Non-cumulative revenue
  • Apple factor
  • Recommendations

Western Europe retains primacy, but emerging markets are taking an ever-greater share

  • All-important US market is not that active
  • Growing bundling activity in emerging markets
  • But overall bundling penetration outside Europe is low
  • Recommendations

Bundling accounts for most carrier-billed music revenue, and is reducing operator margins

  • App stores represent a growing wedge…
  • …and so does Apple Music and iTunes carrier-billed revenue
  • Growing revenue but falling margins
  • Recommendations


  • Further reading
  • Author