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News Every Day |

The Dream of Streaming Is Dead

Remember when streaming was supposed to let us watch whatever we want, whenever we want, for a sliver of the cost of cable? Well, so much for that. In recent years, streaming has gotten confusing and expensive as more services than ever are vying for eyeballs. It has done the impossible: made people miss the good old-fashioned cable bundle.

Now the bundles are back. Last week, Disney and Warner Bros. Discovery announced that, starting this summer, they will offer a streaming bundle of Disney+, Hulu, and Max. Then, on Tuesday, Comcast said that next month it will introduce a streaming bundle of its own, packaging Peacock, Apple TV+, and Netflix. This bundle, called StreamSaver, will be available only to Comcast’s broadband, mobile, and TV customers. Some smaller mini-bundles already exist, but for the most part, the streaming wars had become a battle royale—no alliances, everyone for themselves. Now the combatants have aligned in two blocs, sort of like the Avengers versus the Justice League—except that, confusingly, Marvel movies (Disney) and DC movies (Max) are now part of the same bloc.

It’s not cable, but it’s not not cable either. Streaming hasn’t quite come full circle, but it’s three-quarters of the way around. These bundles are ending an entire era of streaming, with its unsatisfying free-for-all of services. This new era may well be better than the one before it. But the dream of streaming as a cheaper, better version of cable is dead.

For a while, it did actually exist. When Netflix launched its streaming service back in 2007, the company pretty much dominated the market without much serious competition. You could watch basically everything with no ads, and for less than $10 a month. Then, beginning at the tail end of the 2010s, all of the big legacy entertainment companies tried to get in on the action. “For much of the past four years, the entertainment industry spent money like drunken sailors to fight the first salvos of the streaming wars,” the media-industry analyst Michael Nathanson wrote in November. The current streaming landscape, despite offering unprecedented abundance, is a nightmare to navigate. To watch entertainment now requires wading through a frustrating array of streaming services: Netflix, Prime Video, and Hulu, yes, but also Peacock, Paramount+, AMC+, and others.

But this hasn’t brought in the types of profits that companies hoped for. Last year, Disney, Comcast, and Paramount collectively lost several billion dollars on streaming. Making and licensing shows and movies, it turns out, is not cheap. And people are willing to pay for only so many streaming subscriptions. Even when the new services managed to attract subscribers, they weren’t able to hold on to them; in industry parlance, churn was too high. Streaming services have tried to recoup their losses by raising prices, creating ad tiers, and cracking down on password sharing.

Going it alone hasn’t worked, so now they’re teaming up. Neither mega-bundle has announced details about costs, but Comcast’s StreamSaver will be sold “at a vastly reduced price” relative to individually subscribing to all three services, the company’s CEO, Brian Roberts, said during the announcement this week. Packaged together and sold at a discount, each streaming service will make less per subscription, but perhaps collectively they will be more competitive and hold on to more of their subscribers. That’s the idea, anyway.

For consumers, these bundles are probably a good thing. There’s a reason so many people rejoiced at the prospect of cutting the cord—but cable was simple. With streaming, keeping track of all your accounts and all your passwords and where to watch whatever you want to watch—that is not simple. And then, just when you think you’ve got it all figured out, one of the services you subscribe to informs you that you’ll have to shell out for the premium tier if you want to watch a certain show or movie. If you can convert three separate subscriptions into a single cheaper one, as the new deals will seemingly allow some people to do, that’s a win.

The new bundles don’t exactly restore order and sanity. The array of overlapping options is itself confusing. In addition to the Disney+/Hulu/Max bundle, there is also a Disney+/Hulu/ESPN+ bundle, which does not include Max. But if you really want to watch sports, you’ll presumably go for the ESPN/Fox/Warner Bros. Discovery bundle, named Venu Sports. And if you’re a Verizon myPlan customer, you can subscribe to a Netflix/Max bundle—even though those two services are part of opposing three-service bundles, as announced over the past two weeks. Making matters even more complicated, some of the bundlers are already themselves bundles. Disney owns Hulu and ESPN. Warner Bros. Discovery owns CNN and Max. Bundles are bundling with bundles.

Even more bundles are likely in the works, and they may save people some money. But they will not resolve the fundamental tension in what people want out of cable, or streaming, or whatever it is that serves them up stuff to watch. On the one hand, we like having everything in one place. On the other, we don’t like paying a lot of money for things we don’t use. Cable satisfied the former desire but not the latter. Streaming, after the fleeting honeymoon period when you could find almost anything on Netflix, satisfied the latter but not the former. With the new bundles, the streamers are trying to strike a balance between the total consolidation of cable and the total chaos of streaming. That new balance may well be superior to the status quo, but the trade-off between having things in one place and paying for things you don’t need will remain. As long as it does, we’ll never feel totally satisfied.

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