One Platform to Rule Them All: Aggregation Will Alter Streaming Markets in 2025

January 7, 2025 FilmTake Streaming Comments Off on One Platform to Rule Them All: Aggregation Will Alter Streaming Markets in 2025

Standalone subscription video-on-demand (SVOD) services, once celebrated for offering unparalleled flexibility and consumer choice, are undergoing a significant reversal. As the practice of subscription stacking hits its peak and consumers grow weary of rising costs and fragmented platforms, the industry is gravitating back toward video aggregation.

These platforms aim to simplify content access by merging modern technology’s ease with traditional PayTV’s familiar features. However, they also risk reintroducing escalating prices and rigid bundles that many sought to escape.

A Changing Paradigm for Video Distribution

The age of abundant standalone SVOD services may soon face recalibration. Many forecasts highlight that the consumer practice of stacking multiple SVOD subscriptions will plateau by 2025, especially in mature markets like the United States and Europe. In the U.S., the average number of stacked subscriptions hovers around four per household, while European households typically manage just over two. This trend signals a pivotal moment for the industry as both consumers and providers grapple with the limits of standalone offerings.

As a result, the total number of standalone subscriptions in each market is expected to decline, even as SVOD revenues may continue to grow through price hikes, password-sharing restrictions, and bundling strategies.

As price increases and password-sharing crackdowns persist, the SVOD industry could pivot toward consolidation through video aggregation. Aggregators, which include legacy PayTV providers, telecom companies, tech platforms, and dominant SVOD players, aim to centralize content access. This strategy could bring familiar elements of PayTV—such as unified billing, standardized contracts, and integrated advertising—back into focus, albeit with a modernized approach and higher prices.

Streaming Approaches Peak Stacking

Research data underscores the growing relevance of video aggregators. In the U.K., 43% of SVOD subscribers purchased at least one service through a third party by late 2024. Among smaller providers, almost half of all subscriptions came through aggregation platforms, compared to 25% for larger providers. This shift illustrates how consumers increasingly value simplified access to content.

In the medium term, the streaming market will likely consist of a handful, most commonly a duo or trio, of standalone SVOD players per national market, along with aggregators. Furthermore, the task of aggregation is likely to be taken up by legacy PayTV providers, telecom companies, major tech platforms, or the leading SVOD players.

U.S. Premium SVOD Churn Rate

Aggregators offer a range of conveniences that standalone platforms struggle to match. Unified billing, centralized marketing, and single search interfaces make it easier for users to manage their subscriptions. Furthermore, bundling services with existing telecom or PayTV contracts can reduce churn, a persistent challenge for the industry. In the U.S., churn rates reached 40% in 2023, with a subset of "serial churners" canceling services multiple times per year.

The Return to Familiar Models

Rising subscription costs, inconsistent user interfaces, and overwhelming content libraries have tempered the initial appeal. For providers, running a direct-to-consumer (DTC) business demands expertise in payment processing and regulatory compliance, stretching many traditional content creators beyond their core competencies.

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The Path to Reaggregation

There are multiple pathways toward a reaggregated video marketplace:

  1. Technological Enhancements: Aggregators use unified search bars and electronic program guides to simplify navigation. These tools improve the user experience and encourage longer engagement with content libraries.
  2. Service Bundling: SVOD subscriptions bundled with PayTV, telecom, or even financial services offer discounted rates and longer contract durations. For example, in the U.S., Disney's bundle of Disney+, Hulu, and ESPN+ has significantly reduced churn compared to standalone subscriptions. Similarly, European services like Canal+ offer packages including Disney+ and Paramount+ as part of their standard options.
  3. Aggregator Partnerships: Smaller SVOD services increasingly rely on aggregators to reach broader audiences. By joining established platforms, they outsource billing, marketing, and customer support, enabling them to focus on content creation.

Bundling Benefits for Consumers and Providers

For consumers, bundling mitigates subscription fatigue by reducing the complexity of managing multiple accounts. Research indicates that bundled subscribers are less likely to churn. For instance, in the U.K., Sky's inclusion of Netflix within its PayTV packages has proven successful. Additionally, Barclays in the U.K. offers Apple TV+ to certain account holders, demonstrating how bundling extends beyond traditional telecom partnerships.

For providers, bundling provides financial stability by reducing seasonal churn. U.S. consumers demonstrated a willingness to trade flexibility for discounts, with over half willing to commit to year-long subscriptions in exchange for savings. By locking subscribers into longer contracts, providers can stabilize revenue streams and allocate resources toward high-quality content production.

The Role of Free Ad-Supported Television (FAST)

As subscription fatigue grows, the appeal of free ad-supported television (FAST) services is rising. Platforms like Tubi and Amazon's Freevee channel offer cost-conscious alternatives to traditional SVOD. These services also cater to younger audiences who value affordability and convenience over expansive libraries.

Aggregators may incorporate FAST offerings into their bundles, further diversifying their appeal. For example, Comcast's Streamsaver package in the U.S. includes Apple TV+, Netflix Standard with ads, and Peacock Premium with ads at a discounted rate. This approach balances premium content with cost-effective solutions, appealing to a broader demographic.

FilmTake Away: Changes to Streaming Coming in 2025

As the video industry edges closer to peak SVOD stacking, the resurgence of aggregation seems inevitable. While some providers may choose to remain fully standalone, others could pivot toward offering add-on channels or forming partnerships with aggregators.

The shift back toward aggregation is expected to gain significant momentum in 2025, though its full adoption may take several years to materialize.