These days the number of TV streaming services can seem endless: Netflix, Hulu, Disney Plus, Apple, TV Plus and on and on. And now adding to those choices are bundle options. Packages of multiple streaming or other services offered for monthly fee. If it sounds familiar that could be because the platforms are taking a page out of the playbook of the old cable bundles with a few key differences.  |
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Over the past three years all major entertainment companies have launched streaming services. It started with Netflix, then Hulu, then Apple TV Plus. You have HBO Max, Paramount Plus, Peacock. Everyone has come to market with these streaming services and now they have to really grow. So they're looking to partner up as a way to get customers quickly.  |
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The bundles are kind of coming in different variations: the mobile phone operators like a T-Mobile or Verizon. That are offering their own bundles. For example, a subscriber of T-Mobile can get Netflix for free as well as Apple TV Plus and Paramount Plus for one year. Then you have kind of these retailers that are also starting to get into the bundle game. So Walmart has a program called Walmart Plus which is the equivalent to Amazon Prime. Walmart recently announced a deal with Paramount Plus. So if you are a member of Walmart Plus, you can get the ad version of Paramount Plus for free for being a member. It is also heard Costco has started to look into doing something similar.  |
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Then the tech companies that are doing it. So Amazon is known for its Amazon Prime Video Channel. So if you go to Amazon Prime Video Channels, you can access Any App on One App. The next step of is they're looking at offering pricing bundles. Which means maybe you could get two streaming services at a discount.  |
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Cable Bundle only offer over 100 channels over a hundred dollars a month and people didn't like it. Because they were paying a lot of money for a lot of things that they weren't watching. Now these bundles are trying to be a little bit more targeted, more specific.  |
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Disney ESPN Plus and Hulu are examples of a bundle that you have stuff for kids. You have stuff for the whole family with grown-ups and you have sports. So they're trying to be more targeted and specific and not trying to be all things to all people financially.
On the other hand these are pretty complex deals to come about. First of all the platform pays the streaming service. For example Walmart pays Paramount Plus two to three dollars per subscriber that actually activates their service. So you have to really make sure that each partner is invested in what they're doing.  |
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Walmart is marketing these deals in its stores. If you go in you see Paw Patrol and Top Gun and all of their TVs. So these are pretty complex deals that involve various parts of the business. Because when you go into these deals you're not going to get as much per subscribers if they were paying full price. But your hope is that the volume will make up for that and then if you have an ad supported service, you'll make up revenue through them looking at more ads and buying products and so on. If you can get a streaming service for free that's great. Right now it's not clear that all customers know that they can get everything. For the savvy consumers who seek out these bundles can get some good deals.
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