Streaming Bundles: The New Tactic in the Streaming Wars
The streaming world is getting more crowded, and major entertainment companies are responding by bundling their services together, offering discounted packages to compete with individual service subscriptions. This new tactic allows consumers to access multiple streaming services at a lower cost.
Verizon kicked off the trend this week by introducing a new streaming subscription that combines ad-supported plans from Netflix and Max for $10 per month, offering a significant savings compared to subscribing to each service individually. The bundle also includes Disney+, Hulu, and ESPN+ for an additional $10, allowing Verizon customers to access five streaming services for just $20 per month.
This move is part of a broader strategy to compete in the crowded streaming market. Apple and Paramount are reportedly discussing a partnership to offer discounts on their respective streaming services, Apple TV+ and Paramount+. Both services have substantial libraries but struggle to stand out in a highly competitive streaming landscape.
Bundling services is not a new idea. Companies like Disney are already offering bundles, such as Disney+, Hulu, and ESPN+, which can be purchased at a discounted price. Paramount+ is included with all Walmart+ plans, providing an affordable alternative to standalone subscriptions. However, bundling is gaining traction in the telecommunications space, too.
Telecommunications giant Verizon is not the only one exploring the bundling trend. Major entertainment companies are predicted to pivot to a wholesale business model, distributing bundles through platforms like Apple, Amazon, Google, or cable companies like Comcast. The strategy behind these bundles is to reduce churn by providing a "one-stop shop" approach where each service's library is complementary rather than redundant.
Discounted annual plans are another tactic used by streaming services to attract subscribers. Services like Paramount+ Essential can be saved about $35 each year by opting for an annual plan, while ESPN+ offers a year's access for the cost of 10 months. Starz offers an annual subscription for nearly half-off, making it a more affordable option for subscribers.
Promotional offers are also a popular strategy to attract new subscribers. Services like Sling TV offer introductory discounts, with the Orange + Blue combo plan available for just $60.99 a month, and a special offer providing 50% off the first month. DAZN offers savings via annual plans, which can be locked into a 12-month contract or paid upfront for a year, reducing the monthly cost.
As the streaming landscape becomes increasingly competitive, major entertainment companies are responding by offering discounted bundles and promotions. These strategies aim to make their services more competitive and attractive to consumers, providing a more affordable and convenient option in the streaming era.
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