{"id":7213,"date":"2024-08-21T01:51:21","date_gmt":"2024-08-21T05:51:21","guid":{"rendered":"https:\/\/advertisingweek.com\/aw360\/2024\/08\/21\/streaming-tv-bundle-or-bust\/"},"modified":"2024-08-16T12:52:34","modified_gmt":"2024-08-16T16:52:34","slug":"streaming-tv-bundle-or-bust","status":"publish","type":"post","link":"https:\/\/advertisingweek.com\/aw360\/news\/streaming-tv-bundle-or-bust\/7213\/","title":{"rendered":"Streaming TV: Bundle or Bust?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>By Don Norton, General Manager, Data Solutions, AdImpact <\/em><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">The streaming wars have started to resemble the cable industry, where providers offered consumers enticing bundle offers, like the inclusion of HBO or Showtime, and exclusives in order to get them to switch. As streamers fight to ward off subscription churn, they\u2019re turning to the tried-and-true bundling method to keep them. And much like cable of old, independent streaming content platforms working together to win eyeballs. Just within the last year, <a href=\"https:\/\/variety.com\/2024\/tv\/news\/comcast-streamsaver-bundle-price-netflix-peacock-apple-tv-plus-1236011626\/\">Comcast introduced<\/a> an AppleTV+, Peacock and Netflix bundle, and Disney and Warner Bros. Discovery are <a href=\"https:\/\/www.cnbc.com\/2024\/05\/08\/disney-warner-bros-discovery-bundle-streaming-services.html\">bundling Disney+, Hulu and Max<\/a>. And of course, there\u2019s Venu Sports, which will be a combination of Disney, Warner Bros. Discovery and Fox Sports sports content with a scheduled launch this fall.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">While these bundles have been marketed as a way for consumers to save money, their ultimate goal is to drive growth of SVOD offerings for broadcasters and to provide advertisers with even more opportunities to reach consumers where they\u2019re increasingly spending more time. Will streamers learn their lessons from the cable bundle, or are they doomed to repeat the same mistakes? Additionally, if streamers don\u2019t bundle, will they be left behind? We\u2019ll explore further below.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Bundle or Bungle? <\/strong><\/h2>\n<p class=\"wp-block-paragraph\">One of the most recent examples of the bundling strategy is Comcast\u2019s StreamSaver bundle that offers a 35% discount on its included streaming services. The Disney and Warner Bros. Discovery bundle, which includes access to content from ABC, Fox, TNT and CNN, among others, promises a discount to consumers once it launches. While these bundles open up more access to consumers, it also leads to consumers getting overwhelmed by content choices. Additionally, they might force consumers to pay for channels and services they might not want access to. For instance, someone might want access to AppleTV+ and Netflix but not content on Peacock. Similarly, a consumer might only want to use Disney+ and Max for children\u2019s content, meaning they\u2019re paying extra to have Hulu included in the bundle.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Content providers have also leaned into the churn offset strategy in order to keep subscribers in their ecosystem. Using their existing content, they\u2019ve expanded the offerings of their streaming services to prevent subscribers from canceling a service once they were done with a specific show or movie. For instance, Warner Bros. Discovery added NBA games to the Max platform this past season to bring in new subscribers and reduce the consistent churn seen in their subscriber base. Similarly, NBC is adding Olympics content to the Peacock platform to get viewers to sign up and stay with the platform beyond the month-long event. NBC has also announced that the 2024 NFL Kickoff Weekend game from Brazil will be exclusively streamed on Peacock, giving viewers a reason to keep their subscription into the fall season. It will be worth watching whether these content inclusions lead to long-term subscriber growth.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Additionally, the Venu Sports bundle threatens to alienate sports viewers as it does not include all of the content a fan would want. For example, football fans using the Venu Sports service will miss out on games streaming on CBS or NBC, forcing them to purchase Paramount+ or Peacock in order to watch specific games. The upcoming NBA rights deal, which now includes Amazon and NBC instead of TNT, also means that basketball fans will need to have an Amazon Prime account and Peacock subscription to watch their favorite team\u2019s games. YouTube TV moves into its second year with exclusive out-of-market coverage for NFL games. This pricey package is likely to limit the willingness of the diehard NFL fans to consider Venu. These costs add up, and with consumers still being squeezed with inflation, they might choose to forego certain services altogether.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">For consumers looking to save money, these bundles feel like the state of the industry a few years ago, where they\u2019re paying for channels they weren\u2019t using, while also having to pay for additional services that weren\u2019t included in their cable package, like Netflix. This is what led to the a la carte method of paying for specific streaming services and canceling once they no longer needed it. Once consumers have embraced this model and streamers have leaned into it, it\u2019s hard to put the genie back in the bottle.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">If streamers want to make bundles successful, they should allow consumers the option to pick what services among their joint offerings they want to purchase. This ensures that companies can boost both their SVOD and AVOD offerings while giving consumers exactly what they\u2019re looking for.<\/p>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>To Bundle or Not? <\/strong><\/h2>\n<p class=\"wp-block-paragraph\">Despite certain issues with the bundling idea, consumers have expressed an interest in utilizing them. <a href=\"https:\/\/deadline.com\/2024\/06\/streaming-bundles-churn-subscribers-comcast-disney-apple-1235970400\/\">Research firm Magid<\/a> found that bundles boosted customer intent to keep a subscription longer than six months by 15%. Additionally, Nielsen found that <a href=\"https:\/\/www.nielsen.com\/insights\/2022\/whats-old-is-new-again-bundles-could-help-consumers-cope-with-increasing-streaming-service-choice\/\">64% of consumers <\/a>want to see more bundle offerings in the future.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\">With so many major players teaming up, though, it\u2019s worth wondering whether there is room for additional bundles. For instance, what\u2019s a natural fit for Paramount+ or Amazon Prime Video? Similarly, who partners with AMC+, DAZN or Crunchyroll? These providers have their own niche viewers and content offerings, but might not have enough overlap among consumer tastes to bundle with other services. If that\u2019s the case, do they run the risk of losing market share?<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">Content providers on the outside looking in should consider the value of bundling and whether it makes sense for their audience. They should only consider it if it makes financial sense for themselves and their potential offer, meaning both can easily reach target audiences through joint advertising efforts. Additionally, they want to ensure that they\u2019ll gain access to consumers who will want to engage with their content long-term. This means that they\u2019ll keep loyal viewers while also gaining access to viewers who might not have been familiar with their services or who want to watch certain shows or movies on their platform. Overall, it doesn\u2019t make sense for content providers to bundle for the sake of bundling. They need to ensure that it makes sense for their business offerings while not alienating their existing customer base. There needs to be some value proposition to the user.<\/p>\n\n\n\n\n\n\n\n<p class=\"wp-block-paragraph\">In theory, bundling makes sense for both consumers and content providers. They can help viewers save money while helping content providers keep consumers in the ecosystems and unlocking more advertising opportunities. However, as they currently stand, they don\u2019t often help consumers save money and force them to pay for services they don\u2019t want, leading them to once again turn to paying for services a la carte. If streamers truly want to make bundling successful, they need to give consumers more freedom to choose what they want to subscribe to while also partnering with companies that deliver the most value to their business. The streaming industry doesn\u2019t need to make the same mistakes cable providers did. By taking the right steps, they can make bundling a winning proposition for all.<\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>About the Author<\/em><\/strong><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\"><em>Don Norton is a 25-year media and advertising technology veteran. Don is recognized for his extensive knowledge and experience working in the digital video, mobile intelligence, and data solutions markets. Prior to joining AdImpact, Don spent 6 years at Infillion where he held President and Chief Revenue Officer roles. Prior to Infillion, Don spent 10 years at Google leading Entertainment and Sports partnerships. Don started his career with DoubleClick.<\/em><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\"><em>As the General Manager of Data Solutions at AdImpact, Don leads the company&#8217;s industry-wide cross-TV market intelligence business. As AdImpact continues to innovate in the fast paced ad intelligence space, Don is focused on ensuring that AdImpact is driving significant value for its customers while maintaining efficient operations.<\/em><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\"><em>Don graduated from Arizona State University, W.P. Carey School of Business with a bachelor\u2019s degree in Business Marketing.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In theory, bundling makes sense for both consumers and content providers. They can help viewers save money while helping content providers keep consumers in the ecosystems and unlocking more advertising opportunities.<\/p>\n","protected":false},"author":7,"featured_media":7214,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","editor_notices":[],"footnotes":""},"categories":[1],"tags":[10],"topics":[2],"class_list":["post-7213","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-streaming-ctv","topics-editorial"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Streaming TV: Bundle or Bust? | AW360<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/advertisingweek.com\/aw360\/news\/streaming-tv-bundle-or-bust\/7213\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Streaming TV: Bundle or Bust?\" \/>\n<meta property=\"og:description\" content=\"In theory, bundling makes sense for both consumers and content providers. 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