Escaping the subscriber acquisition black hole: why smart brands are turning to bundling

Customer acquisition costs have become an expensive and unsustainable challenge for many subscription brands — so much so that Bango has named a black hole to symbolize how badly DTC marketing is performing for these brands.

In a bold move to spotlight this growing crisis, Bango has launched a new campaign and officially renamed the black hole “Subscriber Acquisition.” The name draws attention to a key finding from our latest report, Gravity Shift: Subscribers, Bundles, and the Acquisition Black Hole.

Based on a survey of over 200 subscription industry leaders, the message is clear: traditional direct-to-consumer (DTC) marketing is no longer delivering the results it once did.

The numbers behind the black hole

Nearly half (48%) of subscription executives report diminishing returns from direct acquisition strategies. Even more (53%) say that channels like advertising and social media are becoming unsustainable.

The message is simple. What used to be reliable paths to growth are now dragging marketing budgets into a void of poor returns. In fact, 46% of respondents describe direct acquisition as a “black hole” for spend.

So, we made it official.

Bango registered a real black hole and renamed it “Subscriber Acquisition” via the International Black Hole Registry. Located at RA: 13 33 07.47 / DEC: +44 29 54.7, this celestial void is now a permanent reminder of the spiralling costs plaguing traditional marketing models in the subscription economy.

Time for a shift in strategy

But the report doesn’t just focus on the problem. It highlights a growing shift toward a smarter, more scalable model: indirect acquisition.
That means distributing subscriptions through third-party channels such as telcos, retailers, banks, and social platforms to reach larger audiences more efficiently.

Here’s what the data shows:

• 77% of subscription leaders are prioritising indirect channels in 2025
• 90% are already using or planning to use bundling partnerships this year
• 72% say indirect acquisition brings in higher-quality subscribers compared to direct channels
• And it’s delivering results. Two-thirds (66%) have reached entirely new or hard-to-reach audiences through bundling. 63% are seeing better retention.
  

What are the bundling opportunities?

According to the Gravity shift research, the most popular bundling partners in 2025 include:

• 42% will be bundling with telco services
• 42% expect to intitate bundling with banks and financial institutions
• 44% expect to work with retailers
• 55% are planning to investigate bundling with device manufacturers (e.g. CTV)

There’s also growing belief in “Super Bundling.” These initiatives combine multiple subscriptions in one place. Platforms like Verizon’s myPlan and myHome are leading the charge. With 73% of subscribers wanting to manage all their subscriptions in one place, it’s no surprise that already 27% of brands surveyed say they are participating in these types of Super Bundling platforms.

Why it matters now

The economic model for subscriptions is different. Brands aren’t chasing one-time transactions. They’re investing heavily to secure long-term, recurring revenue. That makes acquisition cost a critical metric — and an unsustainable one if the only tactic is paid media.

Netflix reportedly spent nearly $3 billion on marketing in 2024. But even the biggest players are now rethinking how they spend. In fact:

• 33% plan to reduce spend on paid search
• 30% are cutting display ad budgets
• 24% are pulling back from email marketing

As Giles Tongue, subscription expert at Bango, puts it: “The old model of winning customers one by one is being replaced by something far more powerful. The bundle economy is about scale, reach and lasting value at lower cost.”

Enter the Digital Vending Machine®

All of this is why Bango built the Digital Vending Machine®. It’s a subscription commerce platform that powers scalable bundling, across every type of service and every kind of partner.

The Digital Vending Machine® helps subscription brands:

• Reach new customers through telcos, banks, retailers and platforms
• Launch bundling partnerships quickly, without complex integrations
• Offer flexible, user-friendly activation experiences
• Scale from single deals to full Super Bundling hubs
  

Today, more than 100 subscription services are already part of the Digital Vending Machine® network. These include Netflix, Uber, YouTube, Xbox and Amazon Prime.

As direct acquisition becomes more expensive and less reliable, the shift toward indirect growth is only gaining momentum.