Presented by Bango
For years, subscription businesses relied on a simple growth engine: Spend heavily on direct-to-consumer (DTC) acquisition and watch the subscriber base grow. The model worked well — until it didn’t.
In 2025, that engine is showing serious strain. The latest Bango report, Gravity Shift: Subscribers, bundles, and the acquisition black hole, based on insights from 201 subscription leaders across sectors like streaming, productivity apps, health, fitness, gaming, and retail, reveals a market hitting a turning point. Leaders are facing rising customer acquisition costs (CAC), diminishing returns on paid channels, and changing consumer expectations — and they’re rapidly reallocating spend toward indirect acquisition strategies.
Here’s why the shift to indirect is gaining momentum — and why subscription leaders now consider it essential for future growth.
Direct acquisition is becoming unsustainable
The old playbook of direct acquisition — flooding search and social channels with paid media — is breaking down. According to Gravity Shift:
- 48% of subscription leaders say direct acquisition now delivers diminishing returns.
- 53% believe DTC channels are no longer a sustainable path to growth.
- 88% expect CAC to rise this year, with nearly one in three forecasting increases of over 25%.
And alarmingly, nearly half (46%) of leaders describe their direct marketing spend as a “black hole” –dollars going in, but fewer and fewer subscribers coming out.
Netflix famously spent nearly $3 billion on marketing in 2024. Spotify spends around $1.5 billion. But most brands can’t sustain that kind of spend — nor should they try. Even as budgets rise, the effectiveness of traditional DTC is eroding due to algorithm changes, data privacy restrictions, market saturation, and consumer fatigue.
Enter indirect: Bundles, partnerships, and platforms
Faced with these headwinds, subscription leaders are moving fast to diversify their growth strategies. The standout shift? Indirect acquisition.
Rather than chasing individual subscribers one ad impression at a time, brands are partnering with telcos, banks, retailers, CTV and device makers, to be included as part of their bundled offering inside trusted and large-scale ecosystems.
The data is clear:
- 82% of subscription leaders plan to increase investment in indirect acquisition this year.
- 90% are already bundling — or planning to — in 2025.
- 72% say subscribers acquired via indirect channels deliver higher lifetime value than those acquired directly.
Super Bundling has recently been a particular focus. 27% of brands stated they are now participating in, or planning to join, multi-service bundles like Verizon’s myPlan and myHome, or Optus SubHub, where services like Netflix, Disney+, Max, Apple One, and others are offered as part of unified subscriber experiences.
Why the bundle economy works
The shift towards indirect isn’t just about acquisition cost efficiency (though that’s a major benefit). It also aligns with how consumers increasingly want to manage subscriptions.
Bango recent consumer data from their Subscriptions Assemble report, published in March showed:
- 62% of U.S. subscribers would prefer to manage multiple subscriptions through a single bundle.
- 44% already receive at least one subscription through a bundled deal.
- Among Gen Z subscribers, 55% now receive bundled subscriptions they previously paid for directly.
Consumers want flexibility, convenience, and value — not the friction of juggling 10 separate apps and billing cycles. Indirect models deliver that, and subscription leaders are responding.
Beyond bundling: An expanding indirect playbook
While bundling is the poster child of indirect acquisition, the ecosystem is broadening. Brands are increasingly investing in:
- Device partnerships (55%)
- Points-based loyalty partnerships (55%)
- Workplace benefits and employee programs (48%)
And in a telling signal, 47% of leaders are exploring partnerships with social media platforms as future bundle channels — a nod to Gen Z’s emerging subscription behaviors.
Indirect doesn’t just reach new segments — it creates co-promotion opportunities, strengthens brand credibility through partner association, and unlocks richer subscriber data.
The takeaway: Indirect is now a strategic priority
This is not a marginal tactic — it’s a fundamental evolution. 91% of subscription leaders agree that successful acquisition now requires both direct and indirect channels.
The brands that embrace this shift early will gain competitive advantage. Those that remain reliant on DTC alone risk seeing CAC spiral while competitors scale more efficiently through indirect ecosystems.
The Digital Vending Machine® advantage
For those pursuing indirect growth, infrastructure matters. The Digital Vending Machine® from Bango already powers bundling ecosystems like Verizon myPlan & myHome, myTelenet, Optimum, Contiente any many more, connecting hundreds of subscription brands (Netflix, Amazon Prime, Disney+, Xbox, Uber and more) with bundling channel partners globally.
The DVMTM helps brands sidestep complex integrations and long contract cycles — accelerating indirect acquisition and making it easy to embed their services in the places subscribers are already engaged.
Final word
Anil Malhotra, CMO at Bango, adds:
“The shift toward indirect acquisition is happening fast — and it’s not just a tactical adjustment, it’s a fundamental strategic priority for every subscription business. Bundling and partnerships are now essential to scale, retain, and engage subscribers cost-effectively. The brands that activate these indirect channels early will be the ones that win the next era of the subscription economy.”
Want the full picture? Download the complete Gravity Shift: Subscribers, bundles, and the acquisition black hole report here.
Anil Malhotra is CMO at Bango.
Sponsored articles are content produced by a company that is either paying for the post or has a business relationship with VentureBeat, and they’re always clearly marked. For more information, contact
