The era of streaming pack battle begins –

The growth of subscription streaming services should be reflected at the end of the package, at least in the subscription TV package. But now that every major entertainment company has a few years in the streaming game, it’s increasingly becoming a package battle, with each service looking for its unique value proposition or partner to make the launch more appealing to consumers. with a limited flow budget.

“There have been some comparisons that say the streaming video industry is copying the cable industry, and this is an example of that,” says media consultant Brad Adgate.

The latest salvo was launched by Walmart, led by CEO Doug McMillon, who unveiled a new benefit on August 15th for Walmart+ members: a free subscription to Paramount+. The service (think of it like Walmart’s version of Amazon Prime) includes free shipping and local delivery, plus discounts on gas and other perks for $13 a month or $98 a year. Will now include Paramount+ (typically $5/month) at no additional cost. Currently, Walmart+ has over 11 million members, compared to over 200 million Amazon Prime members.

“After the confiscation of voodoo [to Comcast] Just a few years ago, Walmart’s partnership with Paramount+ is exciting and shows how effective streaming packages can be for both traditional streaming platforms and non-traditional content players,” said Dan Goman, CEO of streaming company Atelier video. technology. “I expect more partnerships with these types of structures in the near future as the volume of streaming activity increases.”

But the Paramount+/Walmart deal is just one of many deals streamers are making to reduce their numbers or attract potential subscribers. In fact, it’s not Paramount’s only offering. Paramount already includes Paramount+ and Showtime, and on August 31, it updated the bundle to bring Showtime shows to the Paramount+ app for a promotional price of $7.99 per month.

However, among entertainment companies, none is happier than Disney. When the company launched Disney+ ($8 a month) in November 2019, it partnered with Verizon to offer year-long subscriptions to many of the telecom giant’s customers. Neither company revealed how many Verizon customers benefited from the deal, but Wall Street analysts estimate it brought in millions of subscribers.

Disney has since launched its own bundle (Disney Bundle, $14 a month) with Disney+, Hulu and ESPN+, and Verizon is now offering some subscribers a six-month trial of this pricier offer. But it didn’t stop there. Disney has since expanded its package offerings, including a partnership with a division of National Geographic that combines the century-old magazine Disney+ and Nat Geo, and an agreement with Uber to offer its customers two months of Disney+ for free (Disney+ at its criterion ). time, subscribers received six months). Uber One, the company’s loyalty program).

And Disney is thinking big. A source familiar with the company’s plans confirmed that it is considering a subscription program that could link its streaming services to its resorts and theme parks as well as consumer products.

“Disney is more than a brand for our customers, it’s a way of life, and we’re exploring how we can better serve them through our many touchpoints,” said Disney Director of Communications Christina Schacke in communicated. “The membership program is just one of the exciting ideas being explored as we consider ways to bridge the physical and digital worlds to create the next generation of great Disney stories and experiences.”

There’s no doubt that Disney’s success (221 million total streaming subscribers) is due, at least in part, to creative packaging. And the rest of the industry is struggling to get its own slice of the pie.

HBO Max ($10 to $15 per month), when owned by AT&T, was included in certain AT&T wireless and internet plans. In August, Warner Bros. Discovery announced that the company has renewed this agreement. And during the company’s recent call, CEO David Zaslav suggested the company would be open to partnerships to further expand the service’s reach (for starters, it could return to Amazon’s “Channels” program, which helps entertainment sell its services). to Amazon customers. ). The company has already partnered with Verizon to offer six months of Discovery+ free.

“They are trying to reduce their losses, and the more employees, opportunities or offers they have, the less likely they are to unsubscribe,” says Adgait.

In a way, Amazon and Apple are the main drivers of bundled push. Apple TV+’s Apple One bundle ($15 to $30 a month) offers an attractive option, with music, news and games included with Apple TV+, while Amazon uses its Prime Video unit to power its Amazon Prime subscription service. ($139 per year).

But while Amazon and Apple firmly control their own destiny with Prime and Apple One, Paramount is second to Walmart with the Walmart+ deal. The Paramount+ will be a boon to Walmart’s offering, with the retailer likely paying a lower wholesale fee for each sub. And of course, it’s still unclear how many Walmart+ subscribers will take advantage of the offer, though it’s safe to assume they expect it to bring in millions of new Paramount+ subscribers.

“[Former Netscape CEO] Jim Barksdale’s quote is as relevant today as it was when he said, “There are only two ways to make money in business: one is packaging; The other is unlocking,” says Stefanos Metaxas, director of strategy at technology and marketing analytics company Bliss Point Media. “The writing is on the wall [Paramount’s] Traditional business and wants to increase its growth. To do this, they can either spend big on customer acquisition or partner with someone like Walmart and grow their audience overnight. “

However, the trends are clear: packaging is back in fashion. And evolution is likely to continue.

As for what’s next in the world of content packs, it might be helpful to take a look at Spotify, which currently offers one of the best content packs on the market…but only if you’re a registered college student. Music streamer Spotify Premium Student bundle includes services from Disney and Paramount, combining Spotify Premium with ad-supported tiers from Hulu and Showtime for a bargain price of $4.99 a month, nearly $30 a month discount from retail prices. of these services.

A deal like this is unlikely to last long in the open market (“Obviously, they’re confident that over the next few years they’ll make up for lost dollars to college students,” Adgate notes), but if Disney is ready. Combine Hulu with Spotify for students, why not consider it a more expensive but still value-oriented option?

Whether it’s bundles of creative content, partnerships with other subscription offerings, or channel stores from Amazon, Roku or (allegedly) YouTube, the landscape around streaming is changing once again and it’s about to get a little more expensive… of value improves.

This story first appeared in the September 6 issue of The Gossipify. Click here to subscribe.