Introduction

The Subscription Wars research series from Bango continues its deep dive into the global battle for subscribers, focusing this time on East Asia

This dynamic region – encompassing Japan, South Korea, and Taiwan in this report – is characterized by rapid technological advancements, widespread 5G mobile coverage, and fast, ubiquitous broadband. This has made streaming content immensely popular and accessible across all demographics, setting the stage for fierce competition among subscription and content providers.

Bundling is far from new to this region. With smartphones the most popular form of internet access in the region, telcos play a central role in providing not only connectivity but also in offering and managing bundled digital content and services through mobile platforms. Companies like Softbank in Japan, SK Telecom in South Korea, and Line in Taiwan have long integrated services like e-commerce, banking, and even healthcare with entertainment subscriptions, providing a precedent for the delivery of multiple services through a single user experience.

Despite this existing service bundling culture, subscribers across East Asia express growing frustration with both the fragmentation and complexity of their subscriptions. Like other subscribers around the world, many feel overwhelmed by the sheer number of services they juggle and want more cohesive solutions.

To stay competitive and alleviate these frustrations, telcos and content providers in this region must go further. In this report, we’ll examine how they can benefit from a booming subscription market, discovering new audiences, driving retention, and unlocking new avenues for growth.

In this report, you’ll discover

1. The state of subscriptions across East Asia: Japan, South Korea, and Taiwan
2. The market trends driving change across the region
3. The main sources of subscriber frustration
4. The unique rise of indirect subscriptions
5. The power of Super Bundling and how telcos are poised to take control

1. The state of subscriptions across East Asia

East Asia is a critical market for the global subscription economy, driven by a highly developed digital ecosystem and a strong consumer appetite for a wide range of services as subscriptions.

Subscribers in the region typically hold multiple subscriptions across various content types, with Subscription Video on Demand (SVOD) leading the way. This variety reflects the maturity of the subscription market, where well-established models exist not only in video streaming but also in music, gaming, and e-commerce.

However, with a maturing and competitive landscape, content providers face increasing pressure to stand out. Gaming subscriptions, in particular, have become a significant category, especially in the Taiwan market, where nearly half of subscribers pay for a gaming service. The challenge for content providers is clear – they need to consider broader methods than direct sign-ups to drive penetration and acquisition in market. To succeed, companies must explore innovative ways to reach subscribers, leveraging bundling, partnerships, and indirect channels to differentiate their offerings and meet the evolving needs of East Asia’s highly engaged audience.

2. Market trends: From ad tiers to gaming

East Asia was among the first regions to experience significant price hikes in the subscription market during 2021-2022, well before Europe and the USA. While subscribers have had more time to adjust to these increases, there is a limit to how much they are willing to pay. As prices continue to rise, many are forced to cancel subscriptions or carefully choose which services to keep. This is a challenge for subscription services, which must avoid pricing themselves out of the market.

To address this, ad-supported tiers have become increasingly popular, offering subscribers greater choice and flexibility.

Thankfully for content providers, subscribers in this region are more accepting of ads compared with other markets. Barely 1 in 5 (23%) have canceled a subscription due to the introduction of ads, a much lower rate than in other markets: a staggering 44% of Latin American subscribers, for example, have canceled subscriptions due to ads.

In addition to SVOD, gaming remains a major force in East Asia’s subscription landscape. Gaming subscriptions add another layer of expense for consumers, especially in Japan and South Korea, where gamers spend significantly more than the average subscriber. Gamers in Japan, for example, spend almost twice as much as the average at over 6,000 JPY ($42 USD) per month on subscriptions, while their South Korean counterparts spend more than 64,000 KRW ($48 USD), underscoring the crucial role gaming plays in the region’s digital economy.

Average monthly spend on subscriptions:

3. Simplifying the subscription landscape

Despite the strong demand for subscription services in East Asia, many subscribers are increasingly frustrated by the challenges of managing their various subscriptions. The complexity of handling multiple services – both local and international – has left users struggling to keep up with billing, contract renewals, and account management.

In fact, almost a third (31%) of subscribers report difficulty renewing their subscriptions or paying their bills, while 25% have trouble managing and updating personal details.

Beyond billing issues, users also face obstacles when trying to switch between accounts (23%) or access services across multiple devices (23%), making the overall experience cumbersome.

Even seemingly simple tasks, such as remembering where they signed up for a free offer (17%) or setting up new subscription apps (15%), add to the frustration. These barriers not only impact the user experience but also contribute to subscription fatigue as consumers find it increasingly difficult to manage their digital services.

Offering simplified, flexible subscription management solutions, along with more transparent pricing and content bundling, will be essential for content providers and subscription services who want to meet the evolving needs of subscribers.

Across East Asia:

Subscribers have experienced difficulty when…

• 31% – Renewing their contract or subscription
• 31% – Paying their bill
• 25% – Managing and updating personal details
• 23% – Switching between accounts
• 23% – Accessing accounts across multiple devices
• 17% – Remembering where they signed up to a free offer
• 15% – Setting up new subscription apps
• 15% – Canceling their subscription
• 11% – Setting up additional plans or group accounts (e.g. family plans)

4. Indirect subscriptions and the rise of content hubs

As East Asian subscribers look for greater choice and flexibility, a shift towards indirect subscriptions is taking place. More than a third of subscribers (34%) now choose to sign up exclusively via third-party bundles and offers, a much higher rate than in the USA, Europe, or Latin America. In Japan, nearly 40% of subscribers select subscriptions from indirect channels.

This trend reflects the growing appeal of indirect channels, where consumers can access better deals, greater flexibility, and more convenient ways to manage their subscriptions more cheaply. Bundling through telcos and other third-party providers has become vital for consumers looking to streamline their subscription services without being locked into rigid, direct sign-ups.

Local market leaders are already innovating: South Korea’s SK Telecom launched its T Universe subscriptions hub in 2021 and LG U+ launched Udok in 2022. But subscribers across the wider region still want more.

Outside East Asia, content hubs like Verizon +play in the USA and Optus SubHub in Australia have set a new standard by offering all-in-one platforms where users can manage multiple subscriptions, such as streaming services, seamlessly.

As complexity increases, East Asian subscribers are calling for similar content hubs to simplify their experience and control their expenses. The introduction of such platforms could not only meet this demand but also reshape the subscription landscape, providing the ultimate solution for managing an ever-expanding range of services.

Features East Asia subscribers want from all-in-one subscription platforms:

Subscribers want more choice, control and flexibility

5. Super Bundling: Telcos take control

Subscribers throughout our survey have made it clear that they want more than just content hubs – they want telcos to take the lead in delivering these services, and they’re willing to pay for it.

Ultra-fast 5G means that mobile is already the key gateway for content, and telcos already have trusted billing relationships with consumers. So it’s no surprise that two-thirds (66%) of subscribers specifically want mobile providers to lead on the creation of centralized content hubs. This demand is higher than in the USA (50%), Europe (46%), or Latin America (55%).

Telco-driven bundling is already an integral part of the subscription landscape in East Asia. In Japan, KDDI offers bundles that include Amazon Prime, YouTube Premium and Netflix, while SK Telecom in South Korea has long offered Wavve (local) and Apple TV+ as part of its bundle deals. However, these offerings remain somewhat fragmented, and subscribers are asking for a more unified solution.

Super Bundling is the key to solving this. By creating all-in-one content hubs, telcos can integrate multiple services into a seamless experience, addressing the complexity, billing issues, and management frustrations voiced by subscribers. This would not only enhance customer satisfaction but also strengthen the telcos’ position as the central players in the East Asian subscription market.

Who do East Asia subscribers want to provide an all-in-one subscription service?

Key statistics	East Asia	Japan	South Korea	Taiwan
Mobile Operator*	66%	65%	64%	70%
Payment or wallet company	24%	21%	24%	32%
Broadband provider*	23%	18%	23%	33%
Banks or credit unions	18%	12%	21%	26%
A social media platform	14%	9%	14%	24%
Retailer	11%	6%	12%	18%
TV, satellite or cable provider*	10%	13%	6%	12%
Employer or employee benefits company	5%	3%	4%	9%

Section 2: State of the nation – Subscription trends per market

Japan

Japan is the most advanced subscription economy when it comes to where subscriptions are bought with 39% buying exclusively indirectly – where once subscriptions were always direct-to-consumer. This is an emerging global trend, highest in Japan, versus as an example of USA 20%.

Japan’s subscription market is diverse, but heavily skewed towards video streaming, with SVOD topping the list of most popular subscriptions by a considerable margin. 75% of Japanese subscribers have at least one SVOD subscription, followed by music (34%) and an emerging interest in retail and food boxes (25% and 24% respectively).

On average, Japanese subscribers hold around 3 subscriptions, paying 3,188 JPY ($22) per month, or 38,256 JPY ($272) annually.

Despite the variety of services, many Japanese consumers struggle to manage their subscriptions. A significant 53% are frustrated with the difficulty of managing multiple services, while 31% admit to losing track of their subscription spending.

Affordability is a major issue in Japan, with 68% of subscribers unable to afford all the services they want – the highest in the region. This has led 31% of subscribers to cancel at least one service due to price increases.

There’s also growing demand for a unified solution, as 56% of subscribers want one app to manage all of their services, and 23% would be willing to pay more for their internet or mobile bill if telcos provided such a service.

Most popular subscriptions in Japan

South Korea

South Korea’s subscription market is vibrant, with the average subscriber holding 3.4 subscriptions and spending around 39,963 KRW ($30) per month, or 479,556 KRW ($363) annually.

SVOD dominates the market at 84%, while music subscriptions follow at 49%. Retail subscriptions are also a significant player at 46%, alongside food boxes (18%) and gaming services (15%). Despite the broad adoption across various categories, the complexity of managing multiple subscriptions has emerged as a major pain point for South Korean consumers.

A notable 65% of subscribers are frustrated by their inability to manage all of their services in one place, the highest in the region. This has driven 71% to call for a unified app to centralize their subscriptions.

Affordability is a growing concern, with 62% stating they can’t afford all the services they want, and 42% – the highest rate in this report – have canceled a subscription due to price hikes. Despite these challenges, there is significant potential for telcos to step in, as 47% of South Korean subscribers are willing to pay more for their internet or mobile bill if it includes a comprehensive subscription management service, again leading the region in this demand.

Most popular subscriptions in South Korea

Taiwan

Taiwan leads East Asia in subscription adoption, with the average subscriber holding 4.2 subscriptions and spending 1,124 NTD ($35) per month, or 13,488 NTD ($420) annually. SVOD services top the table, subscribed to by 76% of users, followed closely by retail and music services, each at 43%.

Gaming is another key player, capturing 42% of subscribers – more than in any other region – while news services account for 17%. Despite high engagement, managing this variety of subscriptions has become increasingly complex for consumers.

Over half of Taiwan’s subscribers (53%) are frustrated by the difficulty of managing multiple services, and 29% have even lost track of their spending. The need for simplification is clear, with 66% calling for a unified app to handle all their subscriptions.

Affordability remains a challenge for 51% of subscribers, and 35% have canceled services due to price increases. Despite these frustrations, 47% are willing to pay more on their mobile or internet bill if a telco could offer an all-in-one solution to manage their subscriptions.

Most popular subscriptions in Taiwan

Super Bundling: Where do I start?

Content providers

Super Bundling gives content providers instant access to a ready-made distribution, marketing and billing network offered by telcos and other channels around the world. Bringing together telcos and content providers in one place, the Digital Vending Machine® from Bango is a SaaS product that enables the Super Bundling of content subscriptions.

Several global telcos have already created their own vibrant content hubs – bringing together dozens of providers including Netflix, ESPN, Amazon Prime, Duolingo, YouTube, Peloton, Audible and more in one seamlessly integrated solution.

The Digital Vending Machine® from Bango isn’t just for established players. The low barrier to entry means it’s ideal for content and service providers looking to make a name for themselves. Plus, it opens doors to some of the biggest reseller networks around including telcos, banks and retailers. Support for a range of commercial models means that the Digital Vending Machine® from Bango ensures you get to market at speed and with minimal integration pain.

Telcos

The Digital Vending Machine® from Bango is loaded with pre-built integrations for hundreds of subscription products, apps, and streaming services. We provide all the core requirements via standardized technology enabling telcos to deliver Super Bundling in months, rather than years.

The Digital Vending Machine® from Bango is available as a SaaS product, which means telcos can quickly and easily scale, gaining access to a constantly evolving and growing ecosystem of global subscription and content providers.

This happens through a single one-tomany integration, avoiding time-consuming one-to-one arrangements. Enabling this super-fast time to market means that telcos can focus on the things that matter most to them: customer acquisition, retention and engagement. Developing subscription hubs with Verizon and Optus, we’ve helped create deals spanning Netflix, ESPN, Amazon Prime, Duolingo, YouTube, Peloton, Audible and more.