(Re)bundling Is Coming – OTT Is Retransforming The Media Industry

The media landscape is in constant flux, and the way consumers access and engage with content has undergone a dramatic transformation in recent years. Over-The-Top (OTT) media, which delivers video content directly to consumers over the internet, initially disrupted the traditional television model by offering an alternative to bundled cable packages. This shift towards direct-to-consumer (D2C) streaming promised greater choice and often lower costs, allowing viewers to select and pay for only the content they desired. However, the proliferation of individual streaming services has led to a new set of challenges for both consumers and media companies. Managing multiple subscriptions, navigating fragmented content libraries, and the increasing overall cost of subscribing to numerous services have prompted a re-evaluation of this unbundled approach. Consequently, the industry is witnessing a significant emerging trend: the return of bundling, or “rebundling,” in the OTT space. This web lesson aims to explore this evolving phenomenon, examining its historical context, the driving forces behind it, the current landscape of bundled offerings, the advantages and disadvantages it presents, expert predictions for its future, and lessons learned from past experiences with media bundling.

1. A Look Back: The History of Media Consumption and the Shift to Fragmentation

• 1.1 The Era of Bundled Cable Television:
  Cable television first emerged in the United States in 1948, initially as a means to improve television signal reception in areas with geographical challenges. By 1992, this technology had reached its peak penetration, with 60% of all U.S. households subscribing to cable services. The fundamental model of cable television was built upon the concept of bundling, offering subscribers a package of numerous channels, often encompassing a wide array of content from broadcast networks to specialized programming catering to niche interests. This aggregation of content provided a single point of access to diverse entertainment, news, and sports, all for a single monthly fee. Community Antenna Television (CATV), as early cable systems were known, utilized a shared antenna to deliver these signals, effectively bundling multiple broadcast channels together. This bundling approach revolutionized media consumption, shaping how audiences engaged with television and leading to the rise of channels dedicated to specific genres and demographics. However, in recent years, the landscape has shifted dramatically. As of 2025, the number of cable TV subscribers in the United States has declined to 68.7 million, a significant drop from the 105 million subscribers recorded in 2010. This decline, fueled by the rise of streaming services and the phenomenon of “cord-cutting,” signals a major change in how consumers prefer to access video content.
• 1.2 The Rise of Direct-to-Consumer (D2C) Streaming:
  The late 2000s and early 2010s saw the emergence of Over-The-Top (OTT) streaming services like Netflix (which began streaming in 2007 ), Hulu (launched in 2007/2008 ), and Amazon Prime Video (introduced in 2006 ). These platforms offered a departure from the traditional cable model, providing on-demand access to vast libraries of content directly over the internet. The initial appeal of these D2C services lay in their promise of greater control over viewing choices, often at a lower monthly cost compared to comprehensive cable packages. This marked a significant shift towards “unbundling,” where consumers could subscribe to individual services based on their specific interests, effectively paying only for the content they wanted to watch. The number of OTT service subscriptions experienced rapid growth, with the average US household now subscribing to 5.1 streaming services. This period witnessed the rise of exclusive original programming as a key differentiator for these platforms, further incentivizing consumers to subscribe to multiple services. The concept of “peak stacking” emerged, describing the trend of households accumulating numerous streaming subscriptions. However, this fragmentation of the media landscape, while initially offering more choice, has also created new complexities for consumers.
• 1.3 The Pendulum Swings Back: The Inevitable Rebundling:
  The media industry is increasingly recognizing that the current fragmented state of numerous individual streaming options may not be sustainable in the long run. Historically, media consumption has seen a cyclical pattern of bundling and unbundling. The music industry, for example, transitioned from bundled albums to unbundled individual song downloads and then back to the bundled model of streaming services like Spotify. Similarly, the initial enthusiasm for the à la carte approach of streaming is now giving way to a renewed interest in bundled offerings. This return to bundling, or “rebundling,” is driven by a confluence of factors, primarily the growing consumer fatigue associated with managing multiple subscriptions and the increasing costs of accessing content across various platforms. Just as early cable systems bundled broadcast channels for convenience, the new wave of rebundling aims to aggregate various OTT services to simplify the viewing experience and potentially offer better value to consumers. This cyclical nature suggests that the industry is constantly seeking an optimal balance between choice, convenience, and cost for both consumers and content providers.

2. The Pain Points of Plenty: Why Consumers Are Ready for Rebundling

• 2.1 Subscription Fatigue and Overwhelm:
  The proliferation of streaming services, each requiring a separate subscription, has led to a phenomenon known as “subscription fatigue”. Consumers are increasingly overwhelmed by the sheer number of platforms available and the mental burden of managing multiple accounts, passwords, and billing cycles. This abundance of choice has paradoxically made it harder for some to decide what to watch, with Americans reportedly spending an average of 110 hours per year just trying to find something. Furthermore, the cumulative cost of subscribing to several individual services can be substantial, often rivaling or even exceeding the cost of traditional cable television. In 2024, Americans spent 23% less on streaming subscriptions compared to the previous year, with over a quarter of those surveyed citing “streaming fatigue” as a contributing factor. This decrease in spending and the reported feeling of being overwhelmed indicate a growing consumer desire for a more streamlined and cost-effective approach to accessing their favorite content.
• 2.2 Content Discovery Challenges:
  Navigating the fragmented landscape of numerous streaming platforms to find specific content has become a significant pain point for consumers. Each service operates as a content silo with its own unique interface, search functionality, and recommendation algorithms. This necessitates that viewers remember which platform hosts the shows or movies they want to watch and then navigate through multiple apps, often leading to frustration and wasted time. Despite the vast amount of content available across all these services, many subscribers report struggling to find something they want to watch, sometimes leading to cancellation of subscriptions. The lack of a unified search across all their subscriptions is a major inconvenience, and consumers are increasingly seeking easier pathways to discover content in this complex environment. Bundling, by potentially integrating content from multiple sources into a single interface, could offer a solution to these content discovery challenges.
• 2.3 The “Subscribe, Binge, and Cancel” Cycle:
  The rise of streaming has also fostered a “subscribe, binge, and cancel” culture among consumers. Many subscribers adopt a transactional approach, signing up for a service to watch a specific show or movie and then promptly canceling their subscription once they have finished viewing the desired content. This behavior, characterized by “serial churning,” creates instability for streaming platforms in terms of subscriber retention and revenue. It indicates that many consumers lack long-term loyalty to individual services and are primarily driven by access to specific titles. This cycle highlights a potential unmet need for a more consistent and comprehensive entertainment offering that can retain subscribers beyond a single binge-watching session. The willingness of consumers to frequently switch between services suggests an openness to bundled options that could provide a more continuous stream of valuable content and reduce the need for such constant subscription management.

3. Driving Forces: The Motivations Behind the Media Industry’s Rebundling Trend

• 3.1 Combating Subscriber Churn and Increasing Retention:
  High subscriber churn rates pose a significant challenge to the profitability and long-term sustainability of streaming services. Rebundling offers a strategic approach to combat this issue by providing a more compelling value proposition to consumers. By packaging multiple services together, media companies aim to create a “stickier” offering that is harder for subscribers to cancel. The increased variety of content within a bundle enhances the likelihood that subscribers will find something to watch, thus reducing the incentive to churn. Disney CEO Bob Chapek has noted that bundling helps improve churn rates. The fundamental idea is that a bundle provides a broader entertainment ecosystem, making it less likely for a subscriber to discontinue access to everything if only one component doesn’t have appealing content at a particular time.
• 3.2 Enhancing Revenue Streams and Profitability:
  While the initial focus of many streaming services was on rapid subscriber growth, the industry is now increasingly prioritizing profitability. Rebundling presents a key strategy for enhancing revenue streams and improving overall financial performance. By offering bundled packages, media companies can potentially increase the average revenue per user (ARPU) as consumers may opt for bundles that include more services or premium tiers. Moreover, the consolidation of services through bundling can lead to more efficient marketing and operational costs. As fragmentation has been identified as detrimental to profitability, rebundling aims to re-optimize economies of scale, similar to the successful models of traditional pay-TV. Comprehensive streaming bundling, as suggested by some analysts, is seen as a crucial step towards achieving profitability in the long run.
• 3.3 Leveraging Content Libraries and Synergies:
  Many media companies possess extensive content libraries across various streaming platforms they own. Rebundling allows them to strategically leverage these assets and create synergies between related or complementary services. For instance, a company might bundle a family-oriented service with one that caters to a broader adult audience, or combine entertainment with sports content. This approach not only maximizes the utilization of their content but also broadens the appeal of their bundled offerings to a wider range of consumers. The “Great Rebundling” trend reflects this strategy, with legacy media companies increasingly collaborating to combine their content and attract a larger subscriber base. By integrating diverse content sources, companies can gain a more comprehensive understanding of user preferences and tailor their offerings accordingly.
• 3.4 Meeting Consumer Demand for Convenience and Value:
  After years of navigating the complexities of a fragmented streaming market, consumers are increasingly expressing a desire for simplicity and convenience. Rebundling directly addresses this demand by offering a more streamlined way to access a variety of content through a single subscription or bundled offering. This approach reduces the hassle of managing multiple accounts and bills, and it often comes with the added benefit of cost savings compared to subscribing to each service individually. Convenience has always been a significant factor in media consumption, as evidenced by the historical success of cable bundles. The current rebundling trend reflects a recognition that consumers are seeking a similar level of ease of use and value in the streaming era. By aggregating content and simplifying the subscription process, media companies aim to provide a more satisfying and user-friendly entertainment experience.

4. The Current State of Play: Examples of Emerging OTT Bundling Strategies

• 4.1 Single-Company Bundles:
  Several media companies are already offering bundles of their own streaming services. The Disney Bundle  is a prime example, providing various combinations of Disney+, Hulu, and ESPN+ at different price points, with options for ad-supported and ad-free viewing. For instance, the basic Disney+, Hulu, and ESPN+ bundle with ads costs $16.99 per month. This allows families and individuals with diverse entertainment and sports interests to access a wide range of content under a single subscription. Another example is the bundle combining Max and Discovery+, offering HBO’s premium programming alongside Discovery’s extensive library of reality shows, documentaries, and lifestyle content. These single-company bundles represent a strategy to enhance the value proposition for consumers by offering a more comprehensive content selection from within the same media ecosystem, often at a discounted price compared to subscribing to each service separately.
• 4.2 Co-Subscription Bundles:
  A significant development in the rebundling trend is the emergence of bundles that combine services from different, sometimes competing, media companies. The Disney+, Hulu, and Max bundle  is a notable example, offering access to the vast content libraries of these three major streaming platforms starting at $16.99 per month for the ad-supported tier. This groundbreaking partnership between traditional rivals signals a major shift in the streaming landscape, recognizing the consumer desire for a comprehensive entertainment package that transcends individual company allegiances. Such co-subscription bundles aim to provide exceptional value and convenience by aggregating a wide variety of popular and critically acclaimed content under a single subscription, potentially reducing the need for consumers to subscribe to multiple separate services.
• 4.3 Bundles Through Third-Party Aggregators and Platforms:
  Telecom providers and other aggregators are also playing a crucial role in the rebundling movement by offering streaming bundles to their customers. Verizon offers various bundles, including options that combine Netflix and Max, as well as the Disney Bundle, often at a discounted price for their wireless and internet subscribers. T-Mobile similarly includes services like Netflix and Apple TV+ in some of its mobile plans. Xfinity provides its internet customers with the StreamSaver bundle, which includes Netflix, Peacock, and Apple TV+ for a single monthly fee. Retailers are also getting in on the action, with Walmart+ offering free access to Paramount+ for its members. These third-party bundles leverage existing customer relationships and billing systems to offer convenient access to popular streaming services, often providing added value or cost savings to subscribers of the core service. Other platforms like DirecTV Stream offer entertainment bundles that include live TV channels alongside on-demand streaming services.

5. Benefits of the Bundle: Analyzing the Advantages for Consumers and Media Companies

• 5.1 Advantages for Consumers:
  Streaming bundles offer several compelling advantages for consumers. Cost savings are a significant draw, as bundles often provide access to multiple services for a lower price than subscribing to each individually. This allows consumers to enjoy a wider variety of content without breaking the bank. Convenience and simplicity are also key benefits, as managing fewer subscriptions and bills streamlines the entertainment experience. Instead of juggling multiple apps and accounts, consumers can potentially access a broader range of content through a more unified system. Bundles also offer wider content variety, providing access to a diverse selection of movies, TV shows, sports, and other programming that might not be available through a single subscription. This reduces the need to subscribe to numerous niche services to find specific types of content. Finally, there is the potential for better content discovery. Integrated platforms within bundles may offer improved recommendation engines and search functionalities that span across multiple services, making it easier for consumers to find content they will enjoy.
• 5.2 Advantages for Media Companies:
  Bundling also provides numerous benefits for media companies. One of the most significant is increased subscriber retention, as subscribers to bundled services are generally less likely to cancel their entire package compared to those with standalone subscriptions. This leads to more stable and predictable revenue streams. Bundles can also result in a higher average revenue per user (ARPU), as consumers may opt for more comprehensive or premium bundles that generate more revenue than individual subscriptions. Furthermore, bundling can lead to broader reach and market penetration, attracting subscribers who might not have signed up for individual services but find the value proposition of a bundle appealing. Media companies can also benefit from improved data collection and insights into consumer viewing habits across multiple services within a bundle, enabling them to refine their content offerings and marketing strategies. Lastly, bundling can help in combating seasonality by combining services with different peak viewing times, such as sports and general entertainment, leading to more consistent subscriber engagement throughout the year.

6. Expert Insights: Predictions on the Future Impact of OTT Rebundling

• 6.1 Continued Growth of Bundling and Aggregation:
  Experts widely predict that the trend of rebundling and aggregation in the OTT industry will not only continue but will likely become even more prevalent in the future. The fundamental issues of consumer fatigue, the increasing cost of subscribing to multiple services, and the industry’s need for greater subscriber retention and profitability are expected to persist, driving further consolidation and the creation of more bundled offerings. This suggests a long-term shift in the OTT landscape, moving away from a purely fragmented model towards a more aggregated one where consumers can access a wider range of content through bundled subscriptions.
• 6.2 Evolution of Bundle Types and Structures:
  The types and structures of streaming bundles are also expected to evolve beyond the current models. We may see the emergence of more dynamic and personalized bundles, where consumers have greater flexibility in choosing the specific services they want to include in their package. There’s also potential for the growth of cross-industry bundles that combine streaming services with other digital products or services, such as music, gaming, or even e-commerce offerings. These future bundles could leverage advanced technology to offer more tailored and integrated experiences that cater to individual consumer needs and preferences.
• 6.3 Impact on Competition and Market Dynamics:
  The increasing prevalence of rebundling is likely to have a significant impact on competition and market dynamics within the media industry. As major media companies and tech giants focus on creating attractive bundled offerings, smaller, standalone streaming services may face increased pressure to compete. This could lead to further consolidation through mergers, acquisitions, and strategic partnerships as companies seek to gain the scale necessary to thrive in a rebundled environment. The competitive landscape may shift from individual service versus individual service to a battle of comprehensive bundled packages.
• 6.4 The Role of Technology and Personalization:
  Technology, particularly Artificial Intelligence (AI) and sophisticated data analytics, is predicted to play a crucial role in the success of OTT rebundling. AI can enhance content discovery across bundled services by providing more personalized and relevant recommendations. It can also contribute to a more seamless user experience by integrating different platforms within a bundle and potentially even enabling the creation of customized bundles based on individual viewing habits and preferences. The ability to leverage data and AI will be critical for media companies to deliver value and convenience in the rebundled future of streaming.

7. Learning from the Past: Case Studies of Media Bundling Successes and Failures

• 7.1 Successful Examples of Media Rebundling:
  Several examples highlight the potential success of media rebundling. The Disney Bundle , combining Disney+, Hulu, and ESPN+, has proven to be a popular and effective offering, appealing to a broad audience with its diverse content and providing a more attractive price point than subscribing to each service separately. The strategic integration of Hulu content within the Disney+ interface has further enhanced the user experience. In the news industry, publishers like The New York Times and Amedia have successfully implemented bundling strategies by offering access to a variety of content, such as news, games, and other digital products, under a single subscription, leading to increased subscriber retention and average revenue per user. These successes demonstrate that well-curated bundles that offer significant value and convenience to consumers can be highly effective.
• 7.2 Unsuccessful Examples or Challenges in Media Rebundling:
  While the rebundling trend holds promise, there have also been challenges and less successful attempts. Consumers have expressed frustration with the lack of a truly unified interface in some bundles, requiring them to still navigate multiple apps. Concerns have also been raised about whether rebundling will simply recreate the expensive and bloated cable packages of the past. The antitrust lawsuit filed against the Venu Sports bundle, even before its launch, highlights potential regulatory hurdles for certain types of collaborations. Additionally, examples from other industries, such as Unilever’s “Sustainable but Inauthentic” campaign  and Walmart’s struggles in Japan , serve as cautionary tales about the importance of authenticity and understanding consumer needs when creating bundled offerings. Poorly executed bundles that don’t offer clear value or simplify the user experience may face resistance from consumers who initially sought to escape the complexities of traditional media.

Conclusion: Navigating the Rebundled Future of the Media Ecosystem

The media industry is once again in a period of significant transformation, with the pendulum swinging back towards bundling in the OTT landscape. Driven by consumer fatigue, the challenges of content discovery, and the economic pressures facing streaming services, rebundling is emerging as a key strategy for the future. This trend echoes the historical cycles of media consumption, from the bundled channels of cable television to the fragmented world of individual streaming apps, and now back towards aggregation. The success of this rebundling revolution will depend on the industry’s ability to learn from the past, offering consumers genuine value through diverse content, convenient access, and a seamless user experience. As technology continues to evolve, we can expect to see more innovative and personalized bundle structures that cater to the evolving needs of viewers, ultimately reshaping the media ecosystem for years to come.

Further Exploration: Discussion Questions and Resources

• What types of streaming bundles do you find most appealing and why?
• What are the biggest challenges that media companies need to overcome to make rebundling successful in the long term?
• How do you see the role of technology, particularly AI, evolving in the rebundled streaming landscape to enhance the user experience?
• What lessons can the OTT industry learn from past successes and failures in media bundling?
• Do you believe that rebundling will ultimately benefit consumers or primarily serve the interests of media companies?

Key Tables:

1. US Cable Television Subscriber Statistics (1970-2024)

2. Timeline of Major Streaming Service Launches

Note: Launch dates may refer to initial availability or significant expansions.

3. Examples of Current Streaming Service Bundles (2025)

Note: Prices and included services are subject to change.