From clicks to connections: Why subscription brands are turning to bundling
by Giles Tongue

In 2024, Netflix poured nearly $3 billion into marketing a single product: itself. It’s a blockbuster-level budget that would make even the most ambitious executives flinch. But the real plot twist is that a growing share of that spend wasn’t on ads, but on bundling.
Netflix isn’t the only one flipping the script. Instead of throwing more budget at direct-to-consumer (DTC) channels, subscription brands are making a decisive pivot.
According to Gravity Shift: Subscribers, bundles, and the acquisition black hole, a new report from Bango, 80% of industry leaders plan to cut back on at least one major direct channel this year.
So where’s that spend going? Toward indirect growth. Brands are bundling with telcos, integrating with banks, partnering with retailers, and embedding subscriptions into loyalty schemes and employee benefits.
The era of relying solely on direct marketing is coming to an end, and in its place, a new model is emerging. Gravity Shift charts that change, diving into how subscription leaders are adapting and where the most successful brands are investing next.
Why digital ads aren’t delivering anymore
The report reveals that 48% of subscription executives say digital ads are delivering diminishing returns. Over half (53%) believe direct acquisition is no longer a sustainable strategy. And 46% go so far as to call their current DTC spend a “black hole.”
Once a dependable growth engine, DTC marketing now faces a storm of rising costs, tighter privacy regulations, changing algorithms, and subscriber fatigue. Consumers are increasingly harder to target, more expensive to convert, and less responsive to the same old performance playbook.
Even the best-placed ads are struggling to break through. Markets are saturated. Subscriber expectations are higher. And with more brands chasing the same attention, the returns simply aren’t there.
Data in the report suggests we’re at a turning point:
- 88% of subscription brands expect customer acquisition costs to increase in 2025
- 1 in 3 anticipates those costs will rise significantly
- 77% of brands are prioritizing indirect acquisition this year
Why subscription brands are turning to indirect acquisition
Instead of chasing clicks in crowded ad auctions, subscription brands are pursuing growth through smarter distribution, partnering with telcos, banks, retailers, and platforms that already have the trust, reach, and infrastructure in place.
This is the foundation of the bundle economy, and it’s gaining momentum:
- 90% of brands are already bundling or plan to bundle in 2025
- 27% are participating in Super Bundling platforms like Optus SubHub, which allow subscribers to manage services like Netflix, Amazon Prime, and Microsoft 365 in one place
- 44% are bundling through banks and financial institutions
- 44% are bundling or planning to bundle with retailers
More than a cost-saving move, indirect acquisition is proving to be more effective across the metrics that matter. Nearly three-quarters (72%) of brands say subscribers acquired through indirect channels have higher lifetime value than those gained through traditional direct channels, while 86% say indirect channels let them access subscriber segments they couldn’t reach directly.
In the report, one SVP at a social media subscription brand notes a 28% drop in cost-per-acquisition (CPA) after pivoting to bundling and cross-selling.
The future of subscription growth isn’t ads, it’s bundling
As acquisition costs climb and ad returns decline, indirect channels are proving more effective by offering broader reach, stronger retention, and higher-value subscribers.
As one executive put it: “Bundling increases customer value, customer retention, revenue growth, cross-selling, and provides opportunities for competitive differentiation.”
The brands pulling ahead are those stepping away from direct marketing only tactics and embracing smarter, more scalable growth through bundling and strategic partnerships.
Explore the full data set and insights
Download: ‘Gravity Shift: Subscribers, bundles, and the acquisition black hole’
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