BATTLE ROYALE: WAVE 3

As we found in the first wave of “Battle Royale”, viewers are consuming video from more sources than ever.  But this is coupled with even greater expansion across other kinds of entertainment content like social media, gaming, music or podcasts.  This creates more competition for consumers’ disposable time and spending.  It also makes the process of managing individual platforms and subscriptions even more complicated.

Consumers’ desire for greater simplicity isn’t limited just to video.  So, this complexity is an opportunity for companies that can simplify things by offering a bundle that extends to *all* kinds of entertainment, as well as services beyond entertainment.  (Evan Shapiro of ESHAP TV has coined a name for this we think is appropriate: “lifestyle bundle”).

Most major pay TV operators already bundle traditional pay TV and streaming access with internet, wireless phone plans, or home security.  Amazon already offers video, gaming, music, and every other product imaginable under one roof (Amazon Prime).  Other big companies are following suit:

• Microsoft’s purchase of Activision enables them to bundle IP like Call of Duty to their Xbox distribution system and GamePass subscription.
• Their advertising partnership with Netflix could lay the groundwork to expand video content available through Xbox (by bundling Netflix with GamePass, for instance)
• This week we learned that Walmart has met with Disney, Paramount and Comcast to discuss bundling video with Walmart + memberships
• In the UK, Sky TV offers a monthly subscription bundle that combines video access with a new TV set

These macro bundles will change where consumers get their content, the way they choose which pieces to consume, and even what content gets to be part of their consideration set in the first place.

This wave of “Battle Royale” will trend key findings from the first study, but we’ll also dig more into the future of bundling, and how your company could position itself to be where those decisions are made.