Consumers favor simplified streaming bundles, Hub survey finds

Consumers are navigating a complex landscape of TV and movie streaming services, often needing multiple subscriptions to access the content they desire.

A new study by Hub Entertainment Research reveals that this complexity leads to subscription fatigue and higher churn rates, with viewers frequently adding and dropping services.

Hub’s annual “Best Bundle” study highlights that consumers now use an average of 7.4 different TV sources, a slight increase from the previous year.

Based on a survey of 1,603 U.S. TV consumers aged 16-74, the study found that about half of viewers subscribe to three or more major streaming services such as Netflix, Amazon Prime, Disney+, Hulu, and Max. Additionally, nearly two-thirds of consumers use free ad-supported streaming TV (FAST) services like Tubi and Pluto to complement their viewing.

Despite the popularity of multiple streaming services, this trend is driving what Hub describes as “revolving door churn.” Approximately one-third of viewers plan to add and drop services within the next six months, often chasing specific shows or promotional offers before canceling.

The study suggests that bundling services could improve subscriber retention more effectively. Nearly three-quarters of consumers expressed interest in a service that could manage multiple subscriptions in one place.

“Consumers are overwhelmed by the fragmented landscape of streaming services and are well-positioned to migrate to more streamlined solutions,” said Jason Platt Zolov, a consultant for Hub. “New streaming bundles recently announced are a step in the right direction – and those which communicate a clear price/value solution will be well-positioned to help stabilize challenges with churn.”

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This year’s findings underscore the importance of bundling for reducing churn and enhancing customer loyalty. As streaming services continue to evolve, the ability to offer consolidated, easy-to-manage bundles could be key to retaining subscribers in an increasingly competitive market.

For more information, Hub’s 2024 “The Best Bundle” report offers a detailed analysis of these trends and is available on their website.