A new study of 5,000 US subscribers has found they’re finding new ways to save money through bundling.
Bango’s Subscriptions Assemble study records that nearly a quarter of US subscribers (23%) over $100 per month on streaming and subscription services, equating to over $1,200 a year. Subscribers are swapping their standalone subscriptions for combined ‘bundle’ deals. According to the data, the average American pays for 5.4 subscriptions — of which two are now paid for as part of a bundle package or similar deal.
More than half of subscribers (55%) now get these ‘indirect’ subscriptions via their mobile phone providers, while 34% access and pay for them through a retailer such Walmart (Walmart+) or Amazon (Prime). The rise of the bundle means that 44% now get a subscription they used to pay for free of charge, thanks to a bundled deal — rising to 55% for 18-24 year-olds.
Bango’s report argues the move towards bundles is just as much about convenience and flexibility. 41% of subscribers are annoyed that they can’t manage all of their subscriptions in one place, while 62% say they’d rather have a bundle than sign up for individual services.
Nearly two-thirds of subscribers (63%) go as far as to demand one app to manage all of their subscriptions and streaming services – the irony for cord cutters is that this is what they left behind.
Commenting on the new study, Paul Larbey, CEO at Bango said, “Our research reveals a major shift in the multi-billion dollar subscription industry. For the first time, America is moving beyond the ‘subscription economy’ and into a ‘bundle economy’ — where platforms aren’t competing in isolation but teaming up to offer more value to subscribers. Larbey argues it is not just about streaming services, but also , gaming services, and even AI subscriptions that are coming together not just through telcos, but also, retailers and banks.
The rise of services like ‘Verizon +play’ have helped popularize this type of all-in-one ‘Super Bundle’.
While video streaming remains the most popular subscription (75%), nearly two thirds of US subscribers (62%) pay for a retail subscription, while nearly a quarter (22%) pay for a gaming subscription.
New markets are also opening up, with 1 in 10 subscribers now paying a monthly subscription for an AI service like ChatGPT (9%).
Source: broadbandtvnews.com
