Consumer Interest in Combined Services Package Indicates Rise in Demand
In a recent report, Adriana Waterston, executive vice president and insights & strategy lead for Horowitz, has shed light on the increasing interest in bundling digital services. The report, titled "State of Media, Entertainment & Tech: Subscriptions 2025," emphasises the growing consumer appetite for consolidated digital service packages, especially those integrating streaming TV, smart home, home security, fitness, music, and other subscription services.
### Consumer Preferences and Demographics
The survey reveals that approximately two-thirds of Americans (66%) are open to subscribing to a single bundle covering a wide range of services. This trend is particularly popular among families with children (76%), younger consumers (75% of 18-34 year-olds and 71% of consumers 35-49), and existing streamers (71%).
The ease of managing all digital services in one place and paying one bill is an appealing benefit of bundling, according to the researchers. In fact, nearly six in 10 (56%) consumers wish for a centralized place to manage all their subscriptions.
### Collaboration and Interoperability
The need for bundling extends beyond just pricing and bundling strategies. It also includes how operating systems and platforms play nicely with each other. Media and tech companies are now offering bundled packages that include a variety of interconnected digital experiences to enhance perceived value and improve customer retention. This trend demands collaboration between companies on pricing, bundling strategies, and critically, interoperability of platforms and operating systems.
### Future Predictions
The future of bundling lies in seamless aggregation that allows consumers to manage and enjoy all bundled digital services from one interface, accessible anytime and on any device. This requires significant cooperation in system interoperability and UX design across companies.
Additionally, the report predicts growth in M&A activity, driven by the need for scale to offer attractive bundles and embed AI capabilities that increase value. Buyers will prioritize companies with integrated AI for content automation and ad targeting to enhance bundled offerings.
Bundles may increasingly package fitness, home security, and music subscriptions alongside traditional media, reflecting consumer demand for convenience and cost savings. As subscription fatigue grows, companies may introduce ad-supported tiers within bundles or create tiered bundles to maintain affordability and reduce churn, especially targeting younger demographics.
### Smart Home Adoption and Usage
This year's study features a new focus on smart home adoption, usage, and attitudes. The data has been weighted to ensure results are representative of the overall U.S. population. The report is available in total-market, FOCUS Latinx, FOCUS Black, and FOCUS Asian editions.
The survey results indicate that more than four in 10 (41%) consumers find it challenging to keep track of their various subscriptions to apps, streaming services, and smart home services. The report can be found at a specified location for more information.
In conclusion, the bundling of digital services across media, smart home, fitness, security, and music is becoming a prominent trend driven by consumer demand for simplicity and value. The space will continue evolving toward unified, AI-enhanced, interoperable experiences backed by strategic mergers and technology investments, aiming to deliver seamless, cost-effective, and culturally relevant subscription bundles.
- Approximately two-thirds of Americans (66%) are open to subscribing to a single bundle that covers a variety of services, such as streaming TV, smart home, fitness, music, and more.
- The ease of managing all digital services in one place and paying one bill is a significant benefit that attracts nearly six in 10 (56%) consumers.
- Media and tech companies are now collaborating to create bundled packages that offer interconnected digital experiences, enhancing perceived value and improving customer retention.
- The future of bundling involves seamless aggregation of all bundled digital services from one interface, accessibly anytime and on any device, requiring significant cooperation in system interoperability and UX design across companies.
