Market split: bundle or be bundled 

The subscription economy is becoming a bundle economy, with the market splitting between brands that own the customer experience and bundle third-party subscriptions and those that are distributed inside someone else’s experience. This defines the third force in ‘The future of bundling waits for no one’ and calls for a clear strategic choice. 

Almost a third of Americans say “they are done” with standalone subscriptions and will not sign up unless they can find a bundle or deal, rising to 44% of Millennials and 48% of Gen Z. Nearly half now expect subscriptions to be included within their internet, TV, or phone package, while more than half would switch mobile or internet provider for discounted streaming. 62% say they are more loyal to telcos that help them cut subscription costs, reinforcing how bundling is moving closer to a core expectation. 

The old subscription playbook was built around direct relationships: build the app, drive acquisition, own the billing, hold the customer. That model is not disappearing, but it is no longer the default path to growth, as content providers expand their distribution through telcos, broadband providers, Pay TV, banks, retailers and other subscription brands. 

As distribution expands beyond direct channels, the question is no longer just how subscriptions are sold, but who owns the customer relationship. 

What the market split actually means 

Consider how a customer accesses Netflix today. 

For many customers, Netflix is no longer something they sign up for directly. It comes included in their mobile plan with a telco such as Verizon, or bundled into their TV package, where they pay and manage everything through the provider rather than Netflix itself. 

In that setup, Verizon brings multiple services together into one offer and manages the relationship, while Netflix becomes part of that proposition, extending its reach through Verizon’s distribution while continuing to focus on the content and experience it delivers. 

Telcos led early by packaging connectivity, content and services into a single relationship, but banks, retailers and Mobile Virtual Network Operators (MVNOs) are now moving into that role, expanding bundling beyond traditional telco services. 

This is already visible, with banks moving into connectivity, MVNOs scaling rapidly and creator-led brands entering the space, as MrBeast plans Beast Mobile as an MVNO, extending his brand from content into connectivity. 

At the same time, subscription platforms are beginning to combine their offers, such as Disney+ and Hulu being offered together, reaching shared audiences and strengthening their value proposition. (see blog “How co-opetition and multi-party bundles drive subscription growth”) 

Winning as a bundler takes more than scale 

Winning as a bundler takes more than scale or the number of partners included in the offer. 

Adding more services is no longer enough. Differentiation comes from how those services are combined into an experience that feels simple, relevant and worth paying for over time, especially as nearly half of Americans now expect subscriptions to be included in their connectivity package, rising to 55% for Gen Z and 58% for Millennials. 

Customers need to discover value easily, activate it quickly and manage it without friction across apps, payments and support, while having the flexibility to upgrade, downgrade, pause or swap services as their priorities change. 

Discounts remain a strong driver, with more than half of consumers saying they would switch mobile or internet provider for discounted streaming, but they are not enough to sustain loyalty on their own. The strongest offers combine savings with perks, rewards, credits and packaging that make the overall proposition more useful. 

Delivering this consistently depends on how well identity, entitlement, billing, charging, support and partner management work together, because when they do not, customers feel the friction immediately. 

For bundlers, this creates a clear commercial upside, using bundles to increase retention, strengthen perceived value and grow customer spend over time. 

Bundling becomes a capability, with success depending on how effectively these elements are connected and scaled across partners. 

Winning when you are bundled is still winning 

For subscription providers, being bundled is not a fallback strategy and is often one of the most effective ways to reach customers as distribution shifts toward indirect channels through telcos, Pay TV providers, banks, retailers and other subscription services. 

For operators, the risk is not being bundled but ending up inside someone else’s experience on their terms, where the bundling provider controls how your service is presented, activated and used.  

Success in this model depends on how well a service works within that access layer, which means integrating cleanly into existing systems, being clear for customers at the point of activation and operating reliably at scale across entitlement, billing and support without introducing friction. 

When a service fits naturally into that environment, it is more likely to be included, expanded and retained within bundled offers, particularly when it also brings strong customer demand. 

The brands that succeed are those that combine strong customer appeal with operational simplicity, ensuring they remain visible and valuable within the overall customer experience while working effectively within a broader bundled proposition.

Why leaders need to make the choice now 

The market is moving toward indirect distribution as customers look for simpler ways to reduce cost and complexity across multiple services, favoring providers that bring subscriptions together and make them easier to manage, with 62% saying they are more loyal to companies that help them cut subscription costs. 

In response to that demand, more companies are now offering bundled subscriptions, including telcos, Pay TV providers, banks, retailers and other subscription services, shaping how subscriptions are packaged and accessed. 

As more of these offers come to market, bundling is moving beyond individual partnerships toward scalable approaches, supported by infrastructure that connects identity, entitlement and payment across multiple providers and reduces the need for one-to-one integrations. (See blog Multi-party subscription bundling is now the default strategy) 

As this approach expands, value depends not only on the subscription itself, but on how it is accessed, managed and combined with other services.