Magid: More Than 50% of U.S. Consumers Subscribe to SVOD Through a Service Bundle
Shutterstock/tommaso79 photo
June 13, 2024
More than 50% of U.S. consumers subscribe to a subscription streaming VOD service through a bundled offering third-party platforms such as the long-running Disney+, Hulu, ESPN+ bundle offering.
The prevalence of households paying for bundled subscription streaming services increased by 11% from the first quarter 2023 to the first quarter 2024, from 47% of the households bundling a year ago to 53%, according to new data from Magid.
The research firm contends the trends is a good one for SVOD as bundled access provides more stability (less churn) for the subscription platform when consumers pay for multiple services at a discount as standalone platforms.
Consumers in a survey cited a 15% higher commitment to maintaining their SVOD subscriptions for more than six months when bundled with other platforms compared with paying for services individually.
Magid believes that the Apple TV+ service will be a winner in the bundling trend as churn for the service as a standalone is significantly higher versus as part of a bundle.
Comcast’s recent launch of the Xfinity StreamSaver includes Peacock Premium, Netflix Basic and Apple TV+ at more than a 30% discount compared to the cost of subscribing to each service individually,
Other SVOD winners will include services that combine with certain niche platforms, such as Shudder and Crunchyroll, who have a high retention rate relative to other services their size, bringing stability to an overall bundled offering.
“In the low-to-no-growth market that is now streaming, [market share] only comes from stealing share. With an increasing proportion of subscribers now accustomed to dropping and resubscribing services, SVODs urgently need to stabilize at least a proportion of their subscriber base,” Kate Morgan, EVP, Global Media, Entertainment and Games, Magid, said in a statement.
Morgan believes that bundling SVOD is a smart answer to escalating monthly prices.
“Look for other differentiators, including universal reach, bundling with music or video games, or even other services outside of the video entertainment space,” Morgan said.
Subscribe HERE to the FREE Media Play News Daily Newsletter!
Read More
