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How to end the streaming wars

How to end the streaming wars

The streaming wars – a battle that has spanned nearly two decades, with new fighters joining the fray seemingly every day.

The fierce competition between content providers is hardly surprising. The streaming industry is currently valued at $544 billion. And as platforms continue to monetize each subscriber as effectively as possible – through password-sharing crackdowns and price hikes – forecasts suggest the market value could rise to $1.9 trillion by 2030.

Additionally, streaming's universal appeal makes it an even more valuable industry. Bango's 2024 report, Subscription Wars: Super Bundling Awakens, surveyed 5,000 U.S. consumers about their subscription habits and found that over three-quarters of consumers (76%) currently pay for at least one video streaming platform.

All of this shows that the potential rewards are very tempting indeed. But the streaming wars must end or the industry risks destroying itself in the process.

Price increases backfire, subscription fatigue is real

Caught in the crossfire of the streaming wars are consumers – those who are literally paying the price for the industry's increased competition. Recent changes in the industry, such as price increases and ad tiering, have certainly worked. Content providers are making more money as a result: more than a third (35%) of subscribers are now paying for a service they previously accessed for free, and 36% are upgrading their subscription since an ad-supported version was introduced.

But these decisions come at a price. The research shows that over half (57%) of consumers have canceled a subscription due to price increases and over two-thirds (67%) cannot afford all the subscriptions they want.

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Additionally, the average American subscriber has up to 4.5 subscriptions – and one in 10 has more than ten subscriptions – creating unnecessary administrative burden and hassle. A third (32%) report that they are constantly frustrated with the way they currently manage and pay their subscription bills.

All this and the fact that more and more services are coming to market as the market evolves suggests that real unrest is brewing. The industry is suffering from subscription fatigue, and both content providers and consumers are suffering.

Content providers are feeling the effects of churn, and as they fight tooth and nail to compete for users, they are investing billions of dollars in marketing. Meanwhile, consumers are frustrated by the lack of flexibility and the resulting cancellation of subscriptions.

This is not a problem that will fix itself. If content providers continue to fight for users, the problems will continue until consumers inevitably choose other paths. Our research shows that almost a third (28%) of subscribers believe piracy is the only way to access all the content they want in one place.

So how can content providers find a solution and coexist harmoniously with each other?

Superbundling can end the streaming wars

Collaboration may seem counterintuitive for content providers – but there are opportunities that everyone can benefit from, and many have already started doing so.

Super bundling allows third parties such as telecommunications companies to combine multiple subscriptions into a single platform, often at discounted prices. This arrangement can dramatically reduce churn as consumers save more and are less frustrated with admin managing multiple subscriptions.

Consumer demand for these all-in-one content hubs is overwhelming. According to our research, 73% of US subscribers want to access and manage all of their subscriptions through a single hub, and over two-thirds (69%) want to pay for multiple subscriptions with one bill.

Consumers are changing. They want flexibility and choose the services that give them the most control over their finances and content – and right now, Super Bundling offers that convenience and flexibility.

Content providers must be ready to adapt to these changes and seize this opportunity to avoid consumers being turned off or turned off by reputable providers.

Creating centralized hubs that prioritize subscriber preferences is not only best for consumers, but also for content providers. Super bundling opens up new sales channels, taps into previously untapped, inaccessible target groups and at the same time saves marketing costs.

Simply put, both consumers and content providers benefit from bundling. So this is my call to content providers: put down your weapons and put the consumer first.


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