Streaming’s morphing into cable as companies introduce bundles and ads to keeps subs
Bundlin’ up for winter… People are tired of paying for a jumble of subscriptions with “+” at the end. Now streamers are testing new tactics to keep customers. One is bundling: last week, cable giant Spectrum added a free Disney+ basic plan for its premium TV subscribers. Verizon debuted a bundle option for its cell-plan customers, offering Netflix and Max’s ad-supported tiers for an extra $10/month (cheaper than subbing individually). Apple and Paramount are also reportedly considering cozying up to offer hits like “Ted Lasso” and “Yellowstone”" for one discounted monthly rate. Bundles could be the future:
Signed out: While over three-quarters of US households have at least a Netflix, Amazon Prime, or Hulu sub, nearly a quarter of streaming subscribers have axed three or more plans in the past two years as show binges get pricier.
Streaming’s the new cable… but it’s starting to look a lot like old cable, and not just because of bundles. Ads have crept in, with streamers rolling out cheaper ad tiers to keep thriftier viewers. Disney+ and Netflix (which once vowed never to do ads) launched ad plans in 2022. This fall, both streamers hiked prices to their ad-free subs, possibly to nudge users to downgrade. Though ad tiers cost customers less, they tend to have better profit margins than premium subs. Cue: this month Amazon will launch ads in Prime Video, and if you want to stay ad-free, you’ll have to pay $3/month.
Bundles are harder to unwind… It’s easier to ditch a single subscription than one that comes with cell service, cable, two streamers, and a fresh season of “The Crown.” A recent survey from EY suggested that nearly half of Americans were interested in streaming bundles. And Paramount’s CEO said its subscribers watched 40% more content in the months following the streamer’s team-up with Showtime. Experts say this could be the year of the bundle.