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Is bundle pricing worth it? The pros and cons of bundling

BY Samantha Cossick | Fri Jul 05, 2019
Is bundle pricing worth it? The pros and cons of bundling

It almost seems too good to be true — three services for one low monthly price. But just like everything else in life, there are pros and cons to bundle pricing and it may not be right for everyone.

According to a 2018 Deloitte survey, 56% of Americans have kept their pay TV subscription because they consider the bundle “makes the overall price seem like a better deal.”

Here’s everything you need to know about bundle pricing so you know you’re getting the best deal for your home.

What is bundling?

Bundling refers to joining together a package of two or more services, such as internet, TV and home phone, at a discounted price from one provider (or in some cases two partnering providers). A double bundle usually refers to TV and internet while a triple bundle adds home phone to your TV and internet bundle. Some providers are even experimenting with quad bundles that offer internet, TV, home phone and cellphone services together.

Why should you consider bundle pricing?

In short, the right bundle could help you save money. Building an internet and cable bundle from Xfinity, for instance, starts around $40/mo. whereas a comparable internet plan starts at $40/mo. on its own when you look at a la carte pricing.

Providers save money by having customers buy multiple services from them, and as a result, they’re willing to pass some of those savings on to you to keep you as a loyal customer.

We’ve found that packaging internet, TV and home phone can save you up to $50/mo. or more depending on the provider and the services you choose. The savings often come from adding home phone service to a TV and internet package, which is normally $25/mo. or more.

What are the pros and cons of bundling?

Some of the pros of bundle pricing include:

  • One-stop shopping – Instead of shopping around and comparing multiple providers, you can purchase everything you need for your home from one single provider.
  • One bill – In addition to one-stop shopping, you’ll have one single, convenient monthly bill to pay each month covering all of your services.
  • Faster speeds or more channels – Often, the plans featured in internet and cable bundles include faster download speeds or more channels than the basic a la carte pricing options.
  • Promotional offers – Many providers have promotional offers, such as free installation, waived fees, premium programming or bonus features, to make the deal even sweeter.

Some of the cons of bundle pricing include:

  • Contract requirements – Companies can offer discounted pricing on bundles because they often require you to sign a contract or agreement. Canceling your bundle before the contract ends could result in early termination fees.
  • Pricing increases – Many bundles come with promotional pricing that lasts for a certain amount of time (typically the first year of a two-year agreement), which means you can expect a rate hike during your contract.

As you familiarize yourself with the details of each bundle, be sure to compare their features side-by-side. Be sure to note everything extra you get. When you bundle, you may be able to improve your current service with enhanced calling features, add premium channels to your TV package and boost your internet speed at no additional cost to you.

How has bundling changed?

As the bundle pool gets more competitive, providers are giving customers even more customizable options. For example, rather than being stuck with a standard, bundled TV service that includes seemingly every channel, no matter how niche, Xfinity’s Internet + Instant TV (a streaming service) bundle gives the customer more specific control. And Xfinity isn’t the only provider to offer skinny bundle options.

Who should and shouldn’t consider bundling services?

The right bundle can make it worth it. Families or individuals who enjoy a lot of entertainment options, including access to premium channels, such as HBO®, should consider building a bundle since you may be able to get faster download speeds, more channel options and premium channels thrown in as a bonus add-on.

Light internet and TV users or those who rely more on streaming services, such as Netflix or Hulu, instead of traditional TV channels for entertainment may want to consider cutting the cord.

Still not sure if building a bundle is right for you? Call our internet experts today to learn more about bundle pricing options available in your area!

Originally published 6/22/18. Last updated 07/01/19.
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