NRG: 57% of Streaming Video Subscribers Opt for Bundle Deals

In an ironic twist, bundling — the channel-packaging strategy in cable television that many say fueled cord-cutting — is gaining ground in the streaming business, according to new data from the National Research Group (NRG).

NRG says that 51% of consumers say that subscription services make up a significant portion of their monthly expenditures. As inflation increases, people have been forced to make choices about their discretionary spending. That includes cutting back on streaming video subscriptions.

While 66% of survey respondents expect that they will have to make cutbacks to their regular spending due to inflation, only 28% plan to decrease their number of SVOD services over the next six months.

To save money, among consumers with at least one streaming subscription, 57% have opted for bundle deals, including Disney+, Hulu and ESPN+, T-Mobile with Netflix, Verizon and Disney+, and Hulu with HBO Max among the most popular packages.

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Among standalone services, NRG found that $10.60 monthly is the maximum amount the average consumer would pay for a streaming service that included ads. Another 53% of respondents said they were willing to accept ads in return for a lower price, while 28% said they would pay more to avoid ads.

Other notable facts included that 24% of respondents admitted to password-sharing or using a streaming service they don’t subscribe to. Another 66% of consumers said it’s hard to keep track of all the streaming services that have launched in the last few years.

And 56% of respondents said they have taken out a subscription planning to cancel before the free trial ended — and 73% of them have been charged because they forgot to do so.

Survey: Half of MoviePass Subs Likely to Cancel

Fiscally challenged MoviePass got more bad news Aug. 28 after a survey found nearly 50% of MoviePass respondents will likely cancel their membership.

In the August survey of 1,558 moviegoers — including 424 MoviePass subscribers — conducted by National Research Group for The Hollywood Reporter, just 48% of MoviePass respondents said they were satisfied with the service — which was down from 83% approval in a previous survey this spring.

Central to the service’s problems — beyond financial — are the ever-changing rules of engagement, according to the survey. A short-lived price hike from $9.95 to $14.95 was scuttled, with subscribers limited to three screenings per month. That change was followed by more restrictions on what titles subscribers could see and when.

“MoviePass’ innovation was offering the freedom and flexibility to see any movie, at any time, at almost any theater, for a low price,” NRG CEO Jon Penn told THR. “By constantly changing the terms of service — limiting which films subscribers could see and when they could see them — MoviePass has eroded brand trust and undermined their leadership position.”

Survey respondents appear in favor of ticket subscription services, with 23% interested in AMC Theatres’ A-List Stub platform. Another 39% said they would favor any service that could be sustainable.

“There remains immense opportunity and moviegoer appetite for innovation in movie ticket buying,” said Penn. “Future services that offer value, flexibility and convenience — in an economically viable way — will help drive moviegoing to new heights.”