Study: Streaming Subscription Bundling Can Boost Profits, …

Jan 26, 2024 · The report, “Bundling 2.0: Pivoting the cost-of-living crisis into a cross-entertainment growth opportunity,” examines the struggle services face and suggests they refocus their strategy on offering content bundles. "Paying a monthly subscription to access hundreds …

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There's A $1K Reason To Check On Your Yearly Streaming Costs

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Feb 23, 2024 · Many subscribers are looking for deals, the study shows, with about one in five avoiding the traditional, direct subscription process by, for example, signing up for indirect …

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FAQs about Study: Streaming Subscription Bundling Can Boost Profits, … Coupon?

Are streaming platforms raising subscription costs & tempering spending on content?

Streaming platforms are raising subscription costs and tempering spending on content as their strategies evolve the maturing market, according to a new report. The 2025 edition of GlobalData’s Video Streaming report suggests that platforms are now increasingly focusing on profitability having operated at losses for years to grow subscriber numbers. ...

Does bundling increase revenue?

Thus, we find that bundling increases revenues because consumers with low hardware valuations accelerate their purchases in the presence of bundles, but high valuation consumers still find individual consoles to provide flexibility in making software purchases, and of high enough value not to substitute away from a choice of pure console. ...

How effective is bundling?

We find bundling can be effective through of the homogenization effect, and can in fact be stronger when the homogenization effect is weaker. We also find that bundles are treated as separate products (distinct from component products) by consumers. Sales of ously purchased bundles might delay purchases, resulting in lower revenues. ...

Why is bundling profitable?

on demand. The primary explanation for the profitability of bundling relies on homogenization of consumer valuations for the bundle, allowing the firm to extract more surplus. We find bundling can be effective through of the homogenization effect, and can in fact be stronger when the homogenization effect is weaker. We also ...

Is bundling a good product strategy?

Overall, we find bundling to be a flexible product strategy option, which allows firms to create entire product lines where only one product existed. While our findings on bundling are especially true for products with low or zero marginal costs, its effectiveness as a product strategy would be interesting to examine in other markets. ...

Does a software bundle increase profitability?

Such an increase in profitability is a direct result of the ability of the bundle to pull consumer sales forward, particularly for those consumers who do not separately value hardware enough to purchase it on its own early in the life cycle; this effect in turn leads to more software sales over time. ...