The message from streaming services in recent times has been that price rises haven’t seen a notable rise in ‘churn’ – people cancelling their subscriptions. Payments technology company Bango has a different take.
It has surveyed 2,200 music streamers in the US, and found that 60% have cancelled at least one entertainment subscription (not just music: games, video etc too) “to afford price increases”. Meanwhile 39% have downgraded at least one of their subscriptions (again, not necessarily music) “to a cheaper, ad-funded version”.
What’s the answer to all this? Bundles, in Bango’s view. “Over the next 12 months, we predict that Super Bundling will go stratospheric as more and more consumers are attracted by the freedom and flexibility of consolidated subscription management and billing,” claimed the company – which, and this is very relevant context, has products focused on exactly this kind of service.
But as we’ve seen with recent Spotify ructions, one issue with bundles is that they can change the royalties paid out to some music rightsholders (specifically publishers in the US) for the worse.
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