Streaming platforms, like Amazon and Warner Bros. Discovery, consider bundling their various services along with its streaming packages.
RACHELLE AKUFFO: We could soon be seeing more streamers partnering for bundles. According to a new report from the Wall Street Journal, Amazon executives have been exploring selling bundles of streaming services at discounted prices through its Amazon Prime Video channels. And the Journal also reporting that Warner Brothers Discovery has discussed eventually participating in bundles with some of its rivals. It really does seem as if we're coming full circle.
But I mean, we're seeing some analysts saying we're not going back to the days of cable, not to compare it, because he was saying-- and this was from Devin Emery of Curiosity. He was saying that the problem with bundling wasn't that people didn't like it. They weren't liking what they were paying for a service that they weren't really using. So a bit of nuance there, though, Seana. Would you agree, though?
SEANA SMITH: Yeah, but I guess my only response to that would be, I guess, if you pay for a bundle, I don't know if you would necessarily use everything that's included in that bundle. So that would be interesting to see. And also just in terms of the pricing, that's going to be key. We don't really know from this report from the Journal exactly what Amazon is thinking, if Prime is going to be included in these bundles, or if they're thinking of maybe partnering with some other streamers and bundling their services.
It's very, very vague just in terms of where they see the direction of this going. Dave, though, I do think it is a natural step in order for us to see more of these types of bundle offers, though, just given the fact that growth there within the sector has been so hard for so many of the leaders here within streaming. We certainly have seen saturation. So many companies are trying to be innovative in terms of what they're doing to drive new customers, to get new customers into their service here. Ad tier is part of that, but bundling, I think, makes sense. So it'll be interesting, though, to see how they do it.
DAVE BRIGGS: Well, we just showed the two main bundles that do exist right now with the leader out of the gate, really, is that one on your left there. Disney bundle has Disney, Hulu, and ESPN+. And that makes a lot of sense for people. That's a 44% discount off of if you paid for all three of those services separately.
But now, some research from CR Research shows that the average consumer is spending $219 a month right now between cable and their streaming services. So everything we got away from, we are now back in. And that's why the Wall Street Journal calls it the great rebundling. Perhaps the best example of what Amazon might do is what Walmart's doing with their membership, now getting a deal with Paramount+ and partnering there.
But there's no natural streamer that fits with Amazon Prime because they have everything in the space now with movies and television shows and now live sports. I can't imagine who a natural partner would be. But yes, we're getting back to exactly what we ran away from.
RACHELLE AKUFFO: And it's tough because when you figure in Walmart, their service is already $98, so are people just going to do these sort of mini bundles? Will there be a bunch of overlap if you want a bit of something and something else? Do you have to get two bundles? It's a lot. I'm not looking forward to it. But hey, if it gives us more options, we can save, like, 44%. I will do the bundling math. I will try.