Streaming services shift toward modular subscription models

Streaming services are transitioning toward modular subscription models that resemble traditional paid television. Following the introduction of ad-supported tiers, companies are increasingly implementing additional fees for extra features, such as Netflix’s paid ‘extra member’ option for users outside a single household.

Disney is also moving toward a modular approach in the United States, allowing consumers to combine services like Disney+, Hulu, and ESPN with various add-ons, including premium sports packages and potential pay-per-view options for film premieres.

Industry analysts at Deloitte suggest that as subscriber growth slows, companies will experiment further with price differentiation. This may include ‘windowing,’ where lower-cost subscribers must wait longer to access new content compared to premium tier users, as well as increased service bundling to improve customer retention.