Advanced Television

Research: Consumers seek better streaming bundles

June 21, 2024

Is Hollywood reinventing a ‘Bundling 2.0’ of the best content to watch? Hub Intel says US consumers are savvier than ever in navigating TV and movie sources to get what they want. But it’s not easy.

Multiple streaming services are still needed to replicate the ‘all-in-one’ of cable TV days of yore, and viewers increasingly sense the many monthly subscriptions are outpacing their ability to keep track.

The growth of FAST services and more sports content migrating online continue to complicate the viewing landscape. Hollywood is responding with new bundles from distributors (Comcast, Charter etc) and streamers (Disney+, Netflix, Max etc), bringing together services into more simplified bundles to improve loyalty. Will these efforts work?

Hub’s annual Best Bundle study tracks the services that form the foundation of consumers’ bundles, the ones that serve as add-ons, and how these metrics change over time. Key findings include:

Consumers use more than seven TV sources to juggle their viewing needs.

Hub’s 2024 survey reveals that consumers are indeed pulling together more than a handful of TV sources – both traditional and digital – to get what they want.  In fact, this year saw a bounce back to an average of 7.4 services used, after a dip in 2023.

The number of viewers ‘stacking’ three or more of the major streamers (Netflix, Prime Video, Disney+, Hulu & Max) grew to half of users in 2024, with even more growth coming from the nearly two-thirds of people using FAST services (like Tubi or Pluto) to round out their TV diet:

Juggling multiple services propels “revolving door” churn.

Despite growth in using multiple services, consumers aren’t necessarily keeping them for the long term. ‘Revolving door churn’ is seen in roughly a third of viewers who say they intend to both add and drop services in the next six months.  These people are chasing specific programmes or a promotional deal and then cancel services until something else catches their eye.

Helping consumers bundle services in more meaningful ways will improve loyalty.

Short-term subscriber mentality makes managing multiple services more challenging than ever and creates opportunities for studios to better bundle subscriptions.  Nearly three quarters of consumers find a service that could help to manage multiple subscriptions in one place as appealing.

“Consumers are overwhelmed by the fragmented landscape of streaming services and are well-positioned to migrate to more streamlined solutions,” said Jason Platt Zolov, consultant for Hub. “New streaming bundles recently announced are a step in the right direction – and those which communicate a clear price/value solution will be well-positioned to help stabilize challenges with churn.”

Categories: Articles, Consumer Behaviour, Premium, Research, VOD

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