MOVIE NEWS – The streaming industry is on the verge of a major shake-up: all signs point to the return of the classic bundled subscription model as the key to balancing consumer and provider interests. But is this really the solution for the future?

The streaming boom of recent years has hit a ceiling, and the sector’s limits are becoming increasingly obvious. According to a Deloitte forecast, the market is approaching a pivotal moment where single-service subscriptions are falling out of favor. Users are demanding bundled, easy-to-manage access to their favorite content, preferably at a discount and through a single interface. The SVOD (Subscription Video On Demand) scene, once racing to add new subscribers, now faces the challenge of retaining existing ones and focusing on packaging and flexibility.

During the 2010s boom, the number of subscriptions soared: in 2018, the average European user paid for 1.3 streaming platforms, but by 2024 that number had jumped to 2.35. In the US, the average has hovered around 4 for years. Until now, most users signed up individually with each provider, but Deloitte predicts this will shift: this year will likely see fewer single-service subscriptions, with bundled “aggregator” models taking over. This doesn’t necessarily mean falling revenues—on the contrary, price hikes, bundled deals, and the crackdown on password sharing could boost the sector’s profits.

“Market players need to prepare for users wanting solutions that give them access to several platforms through a single subscription. In a sense, the old-school pay TV model could make a comeback, but reimagined for the streaming era,” said Márton Bakos, Senior Manager at Deloitte Technology Advisory.

Who Will Be the Winners?

Deloitte expects that, in the medium term, national streaming markets will be dominated by two or three major SVOD players. Alongside them, aggregators could emerge that provide the entire content lineup on a single interface—offering basic and premium bundles, twelve-month or longer subscriptions, all through one account and bill. Traditional TV companies, telecom firms, tech platforms, or the largest streaming providers will likely fill this role.

“Bundled solutions also fit changing consumer habits. Those with multiple subscriptions don’t want to waste time switching accounts, logging in and out, or endlessly searching for what they want. In the US, half of consumers would spend more time on platforms if it were easier to find their favorite content. So, abundance means nothing if the selection is confusing,” notes Miklós Zaránd, Partner at Deloitte Technology Advisory.

Benefits and Drawbacks

Individual SVOD subscriptions let users pick what to watch and for how long, cutting out the middlemen. Aggregator-based, long-term subscriptions might seem like a step back, but in reality, both sides can benefit with the right model. The cheap, easy-to-cancel SVOD option is less sustainable for providers, especially as prices climb, password sharing is restricted, and the variety becomes harder to navigate. Providers that relied on traditional intermediaries for years may find it challenging to go fully direct-to-consumer. In this light, a return to the aggregation model could offer a more stable business environment for all involved.

Solutions and Global Examples

When TV, telecom, or banking services are bundled with streaming, users usually get a better price than they would signing up with each company individually. Long-term subscriptions—at least one year—also benefit SVOD providers by reducing churn (which is 40% in the US and about 20% in the UK). Aggregators can outsource billing, customer service, or ad sales, while TV companies benefit by expanding their content offers to retain and attract viewers. In the UK, for example, Sky offers ad-supported Netflix in all its pay TV bundles; in France, Canal+ users automatically get access to Disney+ and Paramount+. In Central Europe, roughly a quarter of all SVOD subscriptions reach consumers via pay TV or telecom operators.

Telcos also gain an edge by broadening their offer and retaining more customers. Banks are getting in on the action too: from August 2024, UK’s Barclays will offer Apple TV+ for free to some clients.

“The growing popularity of free video platforms—especially YouTube, which is booming in Europe—complicates the picture for SVOD providers. In the UK, about a third of those who cancel streaming say it’s just too expensive. Standalone SVOD firms won’t dominate forever, but neither can the others rest on their laurels. Flexibility and collaboration are key to keeping—and growing—your audience, especially among younger users,” summarizes Csilla Gercsák, Manager at Deloitte Technology Advisory.

Deloitte