A recent study of 5,000 US subscribers reveals a compelling trend: consumers are finding innovative ways to save money by embracing bundled subscription services. Bango’s Subscriptions Assemble study highlights that almost a quarter of US subscribers (23%) spend over $100 monthly on streaming and other subscriptions, totaling over $1,200 annually. This has led to a significant shift away from standalone subscriptions towards bundled deals.
The data shows the average American manages 5.4 subscriptions, with two typically included in a bundle package. A significant majority (55%) obtain these bundled subscriptions through their mobile phone providers, while 34% access them via retailers such as Walmart (Walmart+) or Amazon (Prime). This bundle phenomenon results in 44% of subscribers receiving a service previously paid for separately at no extra cost, increasing to 55% among 18-24 year-olds.
Bango's report emphasizes that the move towards bundles is not solely about cost savings; convenience and flexibility are key factors. 41% of subscribers express frustration with managing numerous subscriptions individually, and 62% prefer bundles over individual service sign-ups. A striking 63% desire a single app to manage all their subscriptions, ironically mirroring the very system many "cord-cutters" initially sought to avoid.
Paul Larbey, CEO at Bango, commented, “Our research reveals a major shift in the multi-billion dollar subscription industry. For the first time, America is moving beyond the ‘subscription economy’ and into a ‘bundle economy’ — where platforms aren’t competing in isolation but teaming up to offer more value to subscribers.” Larbey further argues that this trend extends beyond streaming, encompassing gaming services and even AI subscriptions, facilitated by partnerships between telcos, retailers, and banks. The success of services like ‘Verizon +play’ exemplifies this burgeoning “Super Bundle” trend.
While video streaming remains the most popular subscription (75%), a substantial portion of US subscribers (62%) pay for retail subscriptions, and nearly a quarter (22%) subscribe to gaming services. The market continues to expand, with 1 in 10 subscribers now paying for monthly AI services like ChatGPT (9%).