More than a third (37%) of consumers agree they are much less likely to cancel a bundled subscription of multiple services compared with a single service subscription, as reported in a recent Hub Intel survey. This sentiment is even stronger (40%) among those consumers who are already subscribing to 4 or more separate services.
Recent findings also confirm canceling services is as much about a service's inability to deliver on content as about saving money. 50% of cancelers say the services are too expensive ("not enough value") or they canceled to save money ("financial reasons"). But nearly as many are citing concerns with limited content: 48% say there were "no more shows of interest" to watch, and 42% say they only signed up to watch one show and then canceled. Individual services can't deliver on a whole household's tastes and interests, making room for new bundles to step in to help.
In a trade-off ("MaxDiff") survey exercise, Hub asked consumers to prioritize the things they consider most valuable in a TV or streaming service. Unlike a standard preference question, this technique forces consumers to define a clear hierarchy of what matters most, revealing the relative importance of key price vs. content drivers.
To appeal to distinct audiences, services can enhance their value proposition by focusing on specific content drivers alongside pricing strategies. New theatrical movies remain powerful subscription magnets, continuing the legacy of premium channels like HBO and Showtime by fulfilling the desire to watch missed big-screen releases at home. Original and exclusive shows also play a critical role, attracting users through beloved franchises and catering to niche fandoms. Highlighting a broad array of original content across multiple bundled services can increase their appeal. Furthermore, live sports are poised to become a significant draw for streaming platforms, with bundles like the Venu sports package (offering content from WBD, Fox, and ESPN) set to capitalize on the demand for specific leagues and teams.
Emphasizing the right mix of price/content advantages for each of these new bundles will be a challenge. Especially since they need to be tailored to different consumer segments. Both price and content can be strategically used for both subscriber acquisition and retention efforts, helping to deliver "all the shows you want" in ways the old cable bundle could only dream of.
Related News
