Failure of direct ads are causing subscription brands to bundle
Failure of direct ads are causing subscription brands to bundle
Subscription service executives are turning to different methods to find new subscribers as direct digital advertising falters.
Just how do streaming services acquire new subscribers, anyway? One way to make it happen is with digital ads, a strategy that streamers and other services have used for a long time. But a new survey from Bango shows that digital ads aren’t nearly as effective as they once were, and subscription services (including streamers) are now thinking of new ways to bring viewers into the fold.
Key Details:
- Cutting back: Many subscription brands are pulling back on paid advertising channels this year.
- More bundles: Ninety percent of subscription brands say they already bundle or will start doing so in 2025.
- Find the viewers: More than 60% of subscribers would prefer to manage subscriptions in a single bundle.
The survey from Bango shows that executives in charge of subscription services are not feeling bullish about the prospects of direct digital advertising. Fully 80% are planning to cut back spending on at least one paid advertising channel, including paid search ads, display advertising, and paid social ads.
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Fifty-three percent say they believe direct channels are no longer a sustainable path to subscriber growth, and executives cite factors like rising costs, algorithm changes, and subscriber fatigue as their most pressing issues. Now, they’re being forced to seek out other methods of reaching customers.
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The good news for customers is that this means more bundles could be on the way. Ninety percent of the senior executives surveyed by Bango say they are already participating in bundles or plan to start doing so in 2025, and over a quarter of brands (27%) are joining what Bango calls “Super Bundles” like the Verizion myPlan, which offers a bundle of Max and Netflix among other options.
“We’re seeing a clear shift from the subscription economy to the bundle economy,” Bango subscription expert Giles Tongue said. “Consumers don’t want to manage ten separate subscriptions — they want value, convenience, and flexibility. The brands that win in this next phase will be the ones that package their offerings in ways that reflect how people actually want to buy.”
Indeed, Bango’s data shows that 62% of subscribers in the United States would prefer to manage multiple subscriptions through a single bundle, and 44% say they get at least one subscription service free as part of a packaged offering.
An increase in bundles would be a definite win for consumers who are watching entertainment prices rise seemingly without end. Streaming bundles might see an uptick in adoption from providers, both to attract new subscribers and to keep the ones they are able to bring in.
HBO Max
HBO Max is a subscription video streaming service that gives access to the full HBO library and exclusive Max Originals. There are hubs for content from TLC, HGTV, Food Network, Discovery, TCM, Cartoon Network, Travel Channel, ID, and more. Watch hit series like “The Last of Us,” “House of the Dragon,” “Succession,” “Curb Your Enthusiasm,” and more. Within HBO Max, B/R Sports allows users to watch live NBA, MLB, NHL, March Madness, and NASCAR events.