With inflation squarely on the scene and more than a dozen major streaming services competing for consumers’ business, a wide variety of streaming services — including rivals — are teaming up to keep customers happy.
“The Great Bundling” is how The Wall Street Journal dubs it. Or, more appropriately, “The Great Rebundling,” in a reference to how cable stations unsuccessfully tried pairing up in the 1990s.
The upshot is that consumers are going to get price breaks and an easier way to manage their shopping and entertainment. That’s a big deal for households, especially in this time of 40-year-high inflation — they spend an average of $219 a month on subscriptions.
This time around, though, streaming services are being careful about the rivals they choose as dance partners. They’re also likely to offer discounts.
Amazon is thinking about creating different packages through its Prime Video Channels platform. Warner Brothers, which already has combined its HBO Max and Discovery+ offerings, is in talks with competitors.
Paramount+ is available to Walmart+ customers, and Costco Wholesale is exploring partnerships with other streaming services to offer a similar service to go head-to-head with Walmart.
Walt Disney’s Disney+, Hulu and ESPN+ are available to viewers as a single package for 44% less than if people were to subscribe to them individually. Disney is now thinking of taking this a step further by putting these three entertainment services on a single app.
Frank Boulben, chief revenue officer of Verizon’s consumer group, views packaged streaming as convenient and economical for consumers. The upside for providers, he says, is customer loyalty.
As Boulben puts the potential success of bundled streaming, “It won’t be at the expense of the consumer. It will be because the consumer values it.”
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