Don’t Look Now, but the Great Unbundling Has Spun Into Reverse

dsc_0328-696x464We are in the age of the great rebundling, when firms use packages of services as a way to increase their scale advantage and thus deepen the moat around their businesses.

In music, the story is even starker than in television. At one time, consumers used to buy a collection of songs — on vinyl, cassette and then compact disc. It was possible to buy a single song or two in these formats, but the internet facilitated more and more people downloading individual tracks.

Yet, today, there is an inexorable consumer shift to all-you-can-eat bundles of music. Already more than 60 million people pay for Spotify, Apple Music and others. These music bundles will increasingly be combined with other services as well to build competitive advantage.

Read Article: NYT

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