Paramount, Apple Reportedly in Discussions to Bundle Streaming Services for Discounted Price

Will 2024 be the year of the bundle in the streaming industry? It could well be shaping up that way, as The Wall Street Journal has an exclusive report on the possibility of Apple TV+ and Paramount+ bundling themselves together in the future.

• Apple and Paramount executives have discussed creating a soft bundle of their streaming services for a discounted price, according to WSJ.
• Discussions are still in the early stages, and both companies are trying to figure out the best configuration for that potential bundle.
• Max and Netflix have also bundled together for select Verizon Wireless users, and more streaming services will likely start teaming up in the near future.

Apple TV+ and Paramount+, a Match Made in Heaven?

The report from WSJ indicates that Apple TV+ and Paramount+ may be offered together for a discounted price soon. The companies are in the early stages of discussing a soft bundle — which means the two services would remain separate apps but would be offered to consumers for one price — though nothing has been finalized yet, and discussions could still come to naught. Paramount Global CEO Bob Bakish has been bullish about the potential for bundling Paramount+ in recent months, however, so there’s a good chance a deal is made.

Both Paramount+ and Apple TV+ have executed price increases this year, so it’s clear executives of both streamers are worried about ensuring that viewers continue to look at their services as good values. Even if negotiations stall, bundling has become an undeniable trend in the streaming industry; Max and Netflix are now available as a bundle for select Verizon Wireless customers, and Disney+ is about to combine with Hulu in a hard bundle — two streaming services sharing the same dedicated app. Paramount+ is already available in a bundle with the Walmart+ service, as well.

Why Are Streaming Services Beginning to Bundle?

The age of bundling has barely begun, and it’s being compelled by market forces that are too powerful for even the biggest media companies. The sheer number of streaming services available has made it difficult for customers to differentiate between platforms. There’s simply too much content available, which has led to more and more consumers signing up for a streaming service to watch a single title, then canceling in order to save money.

Bundling helps keep users engaged in two ways. First, it gives them more content to stream overall, meaning they’ll spend longer with the two services getting to know their libraries and which shows and movies appeal most. Second, the lower price for the two streamers combined increases the perception of those services as good values, making users less likely to cancel.

WBD CEO David Zaslav has made no secret of his belief that bundling is coming for every major platform in the streaming industry. He warned in May that streamers who didn’t bundle with competitors voluntarily would see themselves compelled to do so sooner or later and has signaled he’s open to more bundling opportunities for Max in the future.

Apple and Paramount executives appear to have heard Zaslav loud and clear. Customers should be on the lookout for a bundle of Apple TV+ and Paramount+ in the future, potentially within the next few months if the economics can be worked out.