Hub: Consumers Take to Value-Added Bundles

With rising inflation, U.S. consumers are responding to new bundled options for their SVOD subscriptions, per Hub Entertainment Research’s Monetizing Video study, with those paying for three or more services “spending more than they’d like.”

The average user spends $83 per month on TV services and is only willing to spend $86, the study notes. Consumers paying for three or more services are unwilling to spend more. As such, bundles have improved subscriber loyalty, Hub notes, with 42 percent of users saying they are much more likely to keep bundled services compared to services they subscribe to individually.

Free and low-cost services are attractive to consumers, but users are still willing to pay for the right combination of content and features. The top consideration when choosing a service is still price, followed by the ability to binge an entire season. Other considerations include exposure to advertising, availability of theatrical features, sports rights and cheaper tiers.

“Emphasizing ‘low price’ and ‘unlimited access’ are evergreen value drivers that streamers can lean into as they manage the ups and downs of new programming slates,” says Jason Platt Zolov, senior consultant at Hub. “Leaning into attractive bundles of complementary services is proof-positive that combined services bring winning value and even stronger customer loyalty.”