Economic Strategies in Streaming: The Rise of Bundled Services and ‘Cable 2.0’

This article was first featured on Dan Goman’s official Medium page.

Over the past decade, we’ve witnessed a dramatic transformation in how digital media is consumed. This shift is not just a trend; it’s a reflection of changing consumer preferences and a strategic response by the industry to an increasingly competitive market.

When streaming services like Netflix and Hulu first entered the scene, they offered an enticing alternative to cable with their on-demand content and no-contract model. These platforms revolutionized media consumption, providing a user-friendly choice that allowed people to watch what they wanted, when they wanted. However, as more players entered the market — each requiring a separate subscription — the simplicity that once defined streaming began to diminish. This led to what we can describe as ‘subscription fatigue’, where the burden of managing multiple streaming services became a pain point for consumers.

Recognizing this, the industry has started to lean towards bundled services, where multiple streaming options are offered together, often at a reduced rate. This bundling strategy simplifies the consumer experience and increases the perceived value, echoing the convenience once provided by traditional cable packages. It’s a strategic pivot designed to address consumer fatigue while also capitalizing on the economies of scale that bundling provides.

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