In response to a decade of exponential growth in OTT video-on-demand subscriptions, streaming service subscribers are expressing frustration with the sheer volume of subscriptions required to access desired content. The need for simplicity and convenience has driven consumer sentiment, with 78% of 2,500 US subscribers expressing a desire to manage subscriptions from a single platform, and 77% advocating for consolidated monthly bills.
Partnering with StreamTV, Bango surveyed 108 executives from subscription service providers across various industries, revealing a unanimous belief in bundling as the future for their services. A significant 81% of executives expressed confidence in the efficacy of subscription bundling.
As streaming costs rise and content offerings become more fragmented, consumers are increasingly seeking a modernized version of the traditional pay bundle to enhance their user experience. The study by Horowitz Research found that 61% of streamers would be inclined to switch to a bundled offering from a single provider if such an option were available.
Adriana Waterston, Chief Revenue Officer and Insights & Strategy Lead for Horowitz Research, cited Verizon’s recent +play bundle with Netflix, Paramount+, and Showtime as an example of the industry’s response to consumer needs. However, she emphasized that the evolving demand goes beyond simple bundles, as consumers seek universal and integrated menus, programming guides, and recommendation/search functionalities to navigate the challenges of content discovery in today’s fragmented media environment.
The latest State of Media, Entertainment & Tech: Viewing Behaviors 2023 report from Horowitz Research reveals that U.S. streamers utilize an average of 6.4 services per month, comprising 3.8 paid and 2.6 free services. The findings indicate a clear shift in consumer preferences toward streamlined, multichannel, managed services solutions in the evolving streaming ecosystem.
