By Michaela Gordoni
In the near future, streaming may switch from standalone subscriptions to aggregate content from various providers, like traditional TV packages.
Deloitte reports that streamers need a change as major markets become saturated. As prices rise and streamers implement more bundles and password restrictions, standalone subscriptions will drop, The Hollywood Reporter predicts.
Thanks to streamers’ affordable pricing, profusion of choice and catering to audience preferences, they’ve created an abundance of options for consumers. This has resulted in consumer fatigue.
As cost of living becomes higher and inflation rises, new tiers and bundles create more choices and financial pressure for consumers. The number of subscriptions has plateaued globally, so now streamers are pulling at new ways to reach more consumers.
A return to a system that has fewer bundles and more long-term subscriptions could be what consumers are looking for. It would mean less fatigue with fewer platforms to access, a simpler and time-saving experience with less to manage and pay for.
For streamers, the change could mean lower churn rates and new audience reach. The change could take place via service bundling, where streaming subscriptions are included with pay TV, financial services or telecom. Another way is through media aggregation, where a distributor sells multiple services at a discounted rate.
Per Filmtake, Verizon recently attempted this with its launch of myHome, which combines aggregate subscriptions with its home internet services.
Related: Americans Spend How Much on Streaming Each Month?
“We saw early on that all the streaming services coming out [are] getting pretty complicated because you have a lot of them,” Verizon CEO Hans Vestberg told Barron’s Andy Serwer last year. “What we tried to do was to see if we can offer [streaming bundles] on top of our other offerings…They save money with us on it, it’s a value to our customers.”
Brian Roberts, CEO of Comcast said previously, “[The new cable and streaming landscape] puts us in a place [where] we’re no longer a cable company or a broadcaster, and I think that we’re right at the cusp of change in media and technology… You have to re-invent your company all the time, and re-invent what you think the business model to the consumer is.” And that’s exactly what TV companies will be doing.
Wouldn’t it be nice to just have one main subscription that covers all of the platforms you enjoy viewing? Just hold on a little longer for aggregate models — you may just get your wish.
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