• by Wayne Friedman , May 29, 2024

With the prospect of streaming bundling arriving, analysts are attempting to determine which has the most to gain for those packages.  

One recent survey by Antenna noted that Warner Bros. Discovery's Max is the most likely candidate to see upside to bundling.

The streaming research company estimates that 72% of respondents are “curious” -- those who have canceled the service in the past or currently subscribe less than six months. It also says 28% of those surveyed currently have subscribed to Max for less than six months --  so-called “committed” subscribers. 

This suggests that Max has significant potential upside from using bundles -- to motivate ‘curious’ customers to subscribe more loyally,” say the authors of the report. With that comes, “less risk of losing revenue from existing loyal subscribers ‘trading down’ to a lower cost bundle.”

After Max comes Apple TV+, with the second-highest percentage of "curious" subscribers (68%), while Hulu and Peacock are tied (65%) followed by Paramount+ (64%) and Disney+ (60%). 

On the flip side, of course, is Netflix, which has the most “committed” subscribers at 67%, and “curious” customers coming in at 33%.  

Bundles are being designed by streamers and third parties with the idea that price is a major factor -- and offering discounts versus paying for streamers separately. 

The goal is getting those consumers mostly on the sidelines to sign on -- all which could boost overall subscriber levels.  But Antenna says this won't yield better results for those already committed to services who are already buying in at a higher price.

“Committed customers have shown a willingness to pay for a given service, and a higher level of loyalty. As such, offering them a discounted bundle could be value-destructive."

Antenna says it sources data from a variety of data-collection partners totaling millions of permission-based, consumer opt-in, raw transaction records.