![]() ![]() Still, the discount can't be too steep, especially for companies that are still relying on a significant amount of revenue from traditional pay TV. They also need to determine the right balance between how much a haircut each participant should take, based on the relative popularity of the bundled services. Companies must decide they're willing to make the ARPU tradeoff for the chance at adding more subscribers. Tying together services for a discount will likely mean lower average revenue per user, or ARPU, for all the services involved. "We like the idea of eliminating friction." Drawbacks of bundling "There's a little bit of consumer friction there in terms of having to go out of one app and into another," Disney CEO Bob Chapek said last month, discussing the idea of integrating Hulu, Disney+ and ESPN+ into one user interface. TORGUARD STREAMING BUNDLE MOVIEFiguring out which streaming service has which movie or TV show is still a forehand-slapping nightmare for most users.Īllowing consumers to stay in one service, rather than forcing them to jump from application to application to find shows, also prevents unwanted friction for executives who want to maximize their customers' time spent watching video. Offering a large bundle would also likely lead to better options for helping viewers discover new shows and movies. "Churn is one of the most important metrics here for the sustainability of this model, and I'm confident that we're going to be able to significantly bring that down," Warner Bros Discovery CFO Gunnar Wiedenfels said last month about his company's decision to merge HBO Max and Discovery+. This is a useful tool for media executives, who want to show sustained streaming growth. "The question becomes what catalyzes it to happen."įor consumers that buy many streaming services already, purchasing a bundle of them for a discount would be an instant money saver.įor corporations, pushing together streaming services reduces the number of people who cancel each month, known in the industry as churn. "I think we'll eventually see bundling happen," said Tom Rogers, former president of NBC Cable and currently executive chairman of Engine Media. Outside of that, the obstacles of being a pioneer in setting new bundling standards have thus far been prohibitive. In those cases, executives can set their own rules and use their own technology. Discovery is putting together HBO Max and Discovery+ next year.
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