The year 2024 is looking like it will be the time of the streaming package deal.

• This year, pay TV companies re-adopted the bundle as cord-cutting affected their industry.
• Media executives predict that bundles could become more popular in the next year, as deals like Disney and Charter's could set a framework for this trend.
• Streaming-cable TV bundles are a win-win for both parties, says analyst.

Once again, this year was challenging for pay TV, as more individuals opted to cancel their subscriptions.

Streaming services faced challenges, including subscriber declines, slumping ad revenue, and stubborn losses, while Netflix maintained its dominance.

The age of the traditional cable bundle is being replaced by a new type of bundle that benefits both streamers and cable providers. According to media executives, 2024 may be the year when media companies take a more serious approach to the bundle.

Tim Nollen, a Macquarie analyst, stated that the Charter-Disney deal was a reflection of the current climate.

The National Football League season was preceded by a battle over fees between Charter, a cable giant, and Disney-owned channels, including ESPN, which resulted in the cease of broadcast for millions of Charter's Spectrum service customers for nearly two weeks.

The blackout ended in September, just hours before "Monday Night Football" was set to start on ESPN, resulting in a deal that granted Spectrum TV Select Plus subscribers access to the ad-supported version of Disney+, along with ESPN+.

In 2024, it is likely that there will be similar arrangements due to the broad subscriber bases and positive revenue implications for pay TV and broadband companies, as predicted by Liberty Media Chairman John Malone, who is also on the board of Warner Bros. Discovery.

The possibility of a merger between Paramount and CBS was discussed by CEOs Bob Bakish and David Zaslav last week, although negotiations are still in their initial stages.

Although there is a demand for a streaming bundle, top players have traditionally been hesitant to make such a deal. Companies must consider the ARPU and subscriber growth when offering their services at a discount.

If a streaming bundle is offered at a discounted price, it could decrease ARPU, but if subscribers increase significantly due to the bundle, it could balance out that loss. Cable companies that also own streaming services may worry that a streaming bundle could harm their cable subscriptions.

In 2023, top streaming platforms have made significant moves. Disney recently agreed to purchase Comcast's remaining one-third stake in Hulu, and they have started rolling out their combined Disney+ and Hulu platform. The full release of this platform is scheduled for March 2024. Disney already offers a three-way bundle that includes Disney+, ESPN+, and Hulu.

Apple and Paramount+ were earlier reported to be considering a bundle deal, while Verizon is reportedly preparing to offer a discounted bundle of Max and Netflix to its customers for $10 a month.

The integration of streaming into pay TV bundles could potentially improve the industry's situation, as ad revenue for pay TV is expected to decline by 18% this year, according to GroupM. The inclusion of ad-supported streaming tiers in bundles can increase cable companies' average revenue per user (ARPU) due to the ad revenue generated, as stated by Nollen.

Netflix, like pay TV providers, has experienced subscriber losses over the past year, but has responded by raising the price of its plans and introducing ad-supported tiers to offset those losses.

Last month, Zaslav predicted a "generational disruption" and mentioned the company's streaming service Max, which he claimed was losing billions of dollars. However, Warner Bros. Discovery reported a profit in its streaming segment during its most recent quarterly earnings.

Ampere Analysis reports that the Disney-Charter deal provided a framework for cable companies to adapt their business models to the streaming era and maintain stable subscriber growth.

Disney and Warner Bros. Discovery have the greatest potential to increase their subscriber base pricing and expand their content offerings through bundling, as they already have a broad range of services and are beginning to combine them.

CNBC did not receive immediate responses from Disney, Warner Bros. Discovery, Paramount, Netflix, and Apple when requested for comment.