The cable and satellite cash machine that once dominated the media landscape thrived on one principle: Bundling. Fast forward to today, and the bundle is back. But it’s a new, different model that remains in flux as competitors figure out how to organize what used to be a simple “expanded basic” package centered around one bill. Now multiple bundles and flavors profiles exist across myriad platforms, and consumers – who for years complained that they lacked choice – seem more confused than ever with too many choices. Now the industry is trying to give consumers the choice they’ve always wanted while constructing packages that emulate the old economic model that worked for decades. It won’t be easy.
In 2024, the big question is how to create a novel model – or series of interconnected ones – that leverages modern technology, new consumer habits, and powerful intellectual property profit loops to create something resembling the cable heyday. New bundling models will flourish on metadata, AI-powered search and discovery, and intensely personalized recommendations. The world isn’t there yet, but the industry is setting the stage for a potentially powerful future. Whether it’s Max partnering with Disney+ and Hulu, or Comcast creating a Peacock-Netflix-Apple TV+ combo for its best customers, bundles will increasingly take many forms. Some will work. Some won’t. But experimentation will rule the day.
Next? In a new StreamTRAK® DEEPDive, we examine how media companies are evolving the bundle concept to fit new consumer expectations and business realities. We delve into recent bundle deals shaking up the marketplace, consider new models that are starting to emerge and may become commonplace sooner than anyone thinks, and speculate about how artificial intelligence, metadata advances, and even potential data sharing among competitors could further enhance the bundle experience in the future – assuming parties can work through some dicey issues in the process. Bundling also offers new opportunities for smaller streamers looking to offer up their more specialized content to larger entities that need to fill bundle gaps, thus helping to reduce churn on all sides. In the coming months and years, a complex web of relationships and partnerships could emerge, with bundles of all flavors offering consumers new ways to consume the content they want, when they want, and on the platforms and billing arrangements they prefer. It will be like nothing we’ve seen before, and we explore all the scenarios here now or that could emerge in this special report. Bundling is back. But it’s different. And the industry will never be the same.
