By Morten Suhr Hansen
“We will see more partnerships where products or companies either become part of a larger bundling solution or act as aggregators. This potentially provides subscribers with increased value and perhaps even a better user experience through a single, unified interface.“
This statement comes from Maria Lykke Lützhøft, Director of TV2 Play’s subscription business, in Subscrybe’s brand-new strategic report, Subscription Trends 2025. The report explores key trends and developments that we believe will shape the Scandinavian subscription industry in the coming years.
Bundling is one of the five trends we highlight. After a period of being overlooked, it is now a strategy that many subscription businesses are rediscovering. In a time of increasing competition for consumers’ subscription budgets, companies are focusing on how to enhance the perceived value for their subscribers – both to attract new customers and to retain existing ones.
TV2 Play and Politiken ride the bundling wave
Media companies, in particular, are increasingly adopting bundling solutions – and for good reason. The media industry is one of the most competitive when it comes to consumers’ time and money. In Denmark, 45% of consumers subscribe to three or more TV streaming services in addition to subscriptions for audiobooks, newspapers, news services, music, and magazines.
This means consumers manage more and more subscriptions, leading to increased complexity. Bundling addresses this issue by gathering multiple services into a single solution, offering both greater value and convenience.
TV2 Play, as mentioned earlier, has embraced this strategy. All of its subscription packages now include the streaming service C More, while its two premium tiers also feature the great BritBox service. Additionally, subscribers can add SkyShowtime for an extra fee. This approach combines both ‘hard bundles’ and ‘soft bundles’ – all designed to provide TV2 Play subscribers with more value and extra options.
Another Danish media company, Politiken, has also jumped on the bundling trend. Last fall, Politiken launched a partnership with the highly regarded New York Times, granting all subscribers full access to the New York Times ecosystem. This includes access to The Athletic, a leading sports media outlet, at no additional cost. A strong bundle, assuming Politiken readers embrace the new offerings.
Beware of bundles that complicate decision-making
A critical factor in the success of a bundling strategy is whether subscribers adopt and actively use the additional services included in the package. And this is not a given. Just ask the German news service, Frankfurter Allgemeine Zeitung. Like Politiken, they introduced a ‘hard bundle’ with the New York Times. An initiative they had high expectations for.
Initially, the results seemed promising: marketing efforts promoting the Frankfurter Allgemeine and New York Times bundle led to a 20% increase in clicks on the “Subscribe” button. However, fewer people actually completed the purchase compared to before. The company concluded that many potential subscribers hesitated, unsure if they would have time to read both newspapers despite the fact that they were only paying for one.
This illustrates the biggest risk with subscription bundles: if the offer appears too overwhelming or complex, or if too much of the bundle consists of content or products the subscriber has little interest in, it can negatively impact the decision-making process. Consumers may feel like they are paying for something they won’t use, even if, from the company’s perspective, it’s ‘free’.
So, a few things are absolutely crucial for the success of a bundle. The products included must be developed with a focus on what creates value for customers. They should clearly complement the ‘core product.’ At the same time, it is essential to take all elements of the subscription journey seriously, with respect to each product in the bundle. Work on onboarding customers to the full ecosystem and ensure that as many subscribers as possible are aware of and actively use the entire or large portions of your subscription bundle.
With that said, 2025 will be the year when media companies, as well as other subscription businesses, will test the use of subscription packages even more. There is no doubt about it.
Dive deeper into even more trends for 2025
“Bundling is back.” This is one of the trends we highlight for 2025. But in our strategic report, we also discuss paid loyalty clubs, personalized subscription journeys, churn prevention, and IT infrastructure.
Haven’t read the report yet? Hurry up. You can find it here.
