Streaming platforms rely on old school bundles as their new streaming war strategy.
Original article published at: https://www.verdict.co.uk/streaming-wars-go-old-school-with-streaming-bundles/
Disney, Paramount and YouTube rely on a blast from the past to ensnare new users in the escalating streaming wars: bundles.
You may recall the TV bundles of the 90s and noughties where you paid one price to access your favourite channels – and admittedly some channels that you couldn’t care less about.
Online video providers are now tapping into a similar concept, but instead of TV channels, subscribers get access to a bundle of streaming platforms.
While it may seem a bit old school, market watchers are unsurprised about providers opting for this option.
“Streaming bundles are a natural next step for platforms as it gives users the ultimate, tailored experience,” Tien Tzuo, CEO,and founder at Zuora, tells Verdict.
Introducing bundles could greatly impact the outcome of the streaming wars.
So let’s take a look at some of the players who are opting for bundles as the latest stratagem in the streaming wars.
Disney offers two streaming bundles
Disney has acquired so many studios over the years that it already has several streaming platforms up and running.
Its latest quarterly results revealed that it now has 221.1 million subscribers, more than the 220.6 million subscribers Netflix reported over the same period.
It makes sense for it to try to bundle the different sites together. An ad-supported bundle of Disney+, Hulu and ESPN plus is offered at $14.99. Disney offers another bundle with ad-supported ESPN plus with ad-free versions of Disney+ and Hulu fo $19.99.
“Disney’s latest bundle shows great diversification of content, making them more attractive to new customers who have not seen as much value in the previous Disney+ content,” Stefan Lederer, CEO at Bitmovin, tells Verdict.
Lederer adds Disney still needs to maintain high standards from its original service in bundles.
Paramount and Walmart team up
Walmart+ has partnered with Paramount+ subscribers to create a new Paramount+ Essential subscription. The bundle comes at no extra cost to subscribers.
“It’s been a very good strategy. Other streamers deployed similar strategies early on and saw a significant increase in subscribers,” says Goman. “[Bundles] provide a net benefit to them, while still maximising value back to content.”