Streaming’s New Era: From Fragmented Chaos to Strategic Bundles
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Remember when streaming was the cool new kid on the block, promising to declutter our TV experience? Well, fast forward to now, and it’s more like we’ve just rearranged the clutter. But here’s the scoop: the big players in streaming are catching on and rethinking their game plans.
During the pandemic, everyone was binging and streaming platforms were living the dream. But as the dust settles, they’re facing a bit of a viewer shuffle. The result? Heavy-hitters in the TV network world are getting creative with bundling strategies. Think Paramount flirting with different bundle types and Verizon mixing up the pot with its own combo deals.
Andrew Rosen from Parqor hits the nail on the head: “The original sin of streaming was that [media companies] assumed customer lifetime value looked like cable.” But streaming’s a whole different ball game. In the streaming world, there’s no gatekeeper—viewers hop in and out as they please.
The Bundle Revolution
Here’s where it gets interesting. Disney, the iconic Mouse House, has been coupling Disney+ with Hulu and ESPN+, but kept them as distinct entities. Now, they’re testing the waters by bringing Hulu directly into the Disney+ app. It’s all about keeping viewers glued to one platform, making it easier and more tempting to stay. Joe Earley from Disney sums it up: Integrating Hulu into Disney+ is about “increasing engagement, which reduces churn.”
And Brian Wieser from Madison and Wall? He thinks media companies are being a tad too optimistic with bundling. He’s got a point—if streamers want to win the bundle game, they’ve got to offer more bang for the buck.
What’s the Real Deal with Bundles?
Paramount’s also playing the bundle card. They mixed Showtime into Paramount+, creating a sort of one-stop-shop for viewers. Jeff Shultz from Paramount Streaming notes, “It absolutely changed the performance of that bundle.” They’re even teaming up with Walmart+ to keep viewers hooked.
The Future of Streaming Bundles
What we’re seeing is the dawn of the streaming bundle era. It’s like a throwback to cable, but with a modern twist. Think less about forcing mega-bundles on viewers and more about giving them a buffet of options.
Verizon’s playing matchmaker with Netflix and HBO Max, offering a tempting deal for streamers to mix and match. Erin McPherson from Verizon believes this could be just the start. Imagine a world where you swap out streaming services based on what you feel like watching each month. Now that’s customer power!
The Big Picture
So, what’s the bottom line? Bundling in streaming isn’t just a trend; it’s a strategic move to keep viewers engaged and subscribed. The challenge? It’s got to be data-driven and flexible to truly make an impact. As Rosen puts it, the approach needs to be “more sophisticated and data-driven to really work.”
In the world of streaming, it’s all about staying ahead of the curve. And that’s exactly what we at Twelve Three Media believe in—being the first to catch the wave and ride it like a pro.
Streamline Your Strategy with Twelve Three Media
As we embrace the dynamic era of TV streaming, the key to mastering this domain lies in making smart, efficient media buys. With streaming bundles rewriting how we consume television, it’s crucial to ensure that every ad dollar counts, reaching your audience across multiple platforms without any waste.
At Twelve Three Media, we specialize in precisely that—orchestrating synchronized commercial purchases across all streaming services, ensuring that your message resonates powerfully and effectively with your target audience. Are you ready to maximize your media investments in this new age of TV streaming?