The telecommunications sector is undergoing a paradigm shift. While years ago fiber optic and mobile phone offers were mainly differentiated by speed, coverage, and price, today the true driving force behind customer attraction and loyalty appears to be streaming platforms like Apple TV, Sky, HBO, Netflix, Prime Video, Disney+, and HBO Max. This convergence not only reflects a change in consumer preferences but also reconfigures the business strategies of telecom operators.
From Connectivity to Integrated Entertainment
In a highly competitive and saturated market, telecom operators are expanding their focus beyond basic connectivity. The integration of video-on-demand (VoD) platforms into converged packages has become an essential strategy for attracting and retaining customers. This phenomenon, which began several years ago with isolated agreements, is now a widespread practice even among low-cost operators.
The benefits for telecom operators are clear:
- Increased Perceived Value: Users gain access to premium content as part of their internet, mobile, or TV rates, which enhances their perception of value.
- Loyalty: Packages that include access to streaming services make customers less likely to switch providers, as doing so would require canceling multiple services.
- Differentiation in a Homogeneous Market: In an environment where all operators offer similar fiber speeds, exclusive or integrated content can make a difference.
- Reduced Customer Acquisition Costs: These offers help attract new users at a lower cost than traditional acquisition strategies.
The Role of Streaming Platforms in Network Traffic
Streaming content consumption accounts for a significant portion of global internet traffic. A recent report by Sandvine estimates that 66% of global traffic is generated through video services, with Netflix leading the rankings, followed by platforms like YouTube and Prime Video. This intensive bandwidth usage has generated historical tensions between telecom operators and OTT (Over The Top) platforms, as operators claim that these platforms should contribute to funding the network infrastructures they use to distribute their content.
In response, strategic agreements have emerged that seek to balance the interests of both parties. For example, streaming platforms are integrated into converged packages, allowing operators to indirectly participate in OTT revenues. Furthermore, these alliances could evolve in the future toward models where platforms contribute directly to infrastructure deployment, reducing existing tensions.
Evolution of Telecom Operators’ Strategies
The integration of streaming platforms into converged offers is not an isolated trend. This model has redefined how telecom operators position their services and how they relate to consumers. Some notable strategies include:
- Enhanced Pay TV: Services like Movistar+, Vodafone TV, and Orange TV have evolved to combine linear channels with advanced functionalities, such as cloud recordings, access to content aired in recent days, and personalized recommendations. Additionally, they have integrated streaming platforms directly into their ecosystems, offering a unified experience for users.
- Advanced Integration Models: Since 2016, when Vodafone integrated HBO Spain, to 2018, when Movistar included Netflix in its platform, and in 2025 when Apple TV joined Telefónica, telecom operators have committed to deep integration. Now, content from OTT platforms appears in the internal search engines of telecom operators, allowing users to navigate among multiple services from a single device.
- Diversification of Services: Many operators are expanding their catalog to include alarm solutions, insurance, energy, and health services. This reflects a transition from connectivity providers to multi-service companies seeking to meet all of customers’ digital needs.
Impact on the Customer and the Sector
From the consumer’s perspective, these changes offer several advantages:
- Convenience: Users can access all content and connectivity services from a single provider with one bill.
- Cost Savings: Bundling streaming platforms as part of a converged package is often more economical than acquiring them separately.
- Integrated Experience: Integration facilitates navigation between services and content, eliminating the need to switch between multiple applications.
For telecom operators, the impact is equally significant. Converged packages reduce customer churn, strengthen competitive positioning, and allow for the exploration of new revenue sources. Moreover, by collaborating with OTT platforms, operators can enhance their relevance in a market where connectivity has become a commodity.
The Future of Streaming in Telecommunications
The trend toward integrating streaming into telecom operators’ offers seems to be solidifying as a key business model. However, the sector faces significant challenges:
- Sustainability of Infrastructure: As the demand for high-resolution and 4K content grows, fiber optic and 5G networks will require continuous investment to maintain performance.
- Competition for Exclusive Content: Telecom operators that offer exclusive content or priority agreements with OTT platforms will have a competitive advantage.
- Diversification of Digital Services: Integrating additional services, such as smart homes or IoT solutions, will be essential to maintain growth in a saturated market.
Conclusion
Streaming has transitioned from being a disruptive phenomenon to becoming the core of telecom operators’ strategies. The integration of platforms like Netflix, Prime Video, or Disney+ not only responds to consumer demand but also redefines the role of operators in a constantly evolving market. In this new landscape, companies that can balance connectivity, content, and digital services will be better positioned to lead the future of telecommunications.