Chances are, if you are a tech-savvy individual, you’ve used bundled media services at some point in your life. 

Think about your Netflix account, iTunes and even news subscriptions; the bundling and unbundling of media has been used for years to keep catering to consumer demand.

With the media industry strained under the current economic climate, industry professionals and publishers have been given two viable options for survival.

They could either set up paywalls, which will help the business to generate revenue via subscriptions, or bundle products together, which will be able to save money on advertising and production (we will get to more on this later).

So, what is media bundling and, for that matter, unbundling? According to Strategic Toolkits, bundling is the integration of a number of features, services and accessories into one purchase. Unbundling is when these components are separated into single purchases. 

This concept can be illustrated in our everyday lives. Think of your favourite fast food restaurant: Would you rather buy a burger, fries and a drink separately or in one cheap and convenient combo? Most people would choose the latter, purely for value’s sake. 

The media industry has been in a constant state of back and forth, bundling and unbundling, for the past 20 years as publishers have struggled to make the transition from print to online. New York magazine is the perfect example of this as it offers access to its publications (The Cut, The Strategist, Intelligencer, Vulture and Grub Street) for $5 USD a month. 

Bundling can come in three different formats, including:
  • Aggregators: These are third-party distribution where subscribers have access to a wide range of digital content for a monthly fee. 
  • Micropayments: This is a pay-as-you-go option for readers who want to pay for individual articles that pique their interest, as opposed to paying for a whole subscription. 
  • Subscription bundles: This is essentially a dual subscription deal where a reader will pay a discounted price if they subscribe to two publications at the same time. 
Media bundling appeals to consumers because of its convenience as they believe they are getting more value for their money when they are gaining access to multiple things for a low cost. 

Bundling also appeals to media companies because it allows for reduced marketing and distribution costs. This is because you are offering your products together, instead of offering them separately. Additionally, your business will get a greater return on the cost of acquiring a consumer since they will be purchasing more products. 

The ‘two-in-one’ nature of bundling also means that you will attract a whole new range of consumers that are looking for a great deal, a convenient purchase or who are just trying to purchase products that complement each other. 

Although there are many benefits to bundling, it can be a risky choice to bundle your products and lead to a fragmented media landscape where consumers are spoilt for choice — and not in a good way.

When consumers are faced with too many paywalls or subscription offers, they may experience subscription fatigue. This is when the user becomes overwhelmed or frustrated from signing up to too many subscription services.

This proves that giving your customers more options isn't necessarily better to the consumer; it is more about providing a unique or needs-based subscription service. 

Would you be open to purchasing a media bundle? Why or why not? Be sure to let us know in the comments section below.

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Want to learn more about the relationship between the publishing industry and subscription services? Be sure to check out our article, Turns out, readers will fund quality journalism.
*Image courtesy of Vecteezy