Why Companies Bundle Products Together
Broadband with TV, burgers with fries, software suites — bundling can save customers money and earn firms more.
By Iris Penhaligon | Oct 13, 2026 | 5 min
Bundling — selling several products together for a single price — is everywhere. Fast-food meals, streaming packages, and phone contracts all use it.
It looks like a discount, and often is. But the economics are more interesting than that.
I Pure and mixed bundling
Pure bundling means the products are only available together. Mixed bundling means you can buy them separately or as a bundle, with the bundle priced lower than the sum of its parts. Mixed bundling is more common in consumer markets.
II Why it increases revenue
Different customers value each product differently. One person values the TV package highly and broadband less; another the opposite. Priced separately, the firm might lose sales to both. Bundled, the total value each customer places on the package is often more similar, letting the firm charge a price both will pay.
III Other benefits for firms
- — Lower costs from selling, delivering, and billing together
- — Customers who are less likely to switch provider
- — Introducing customers to products they might not have tried
- — Making price comparison with competitors harder
IV When it raises concerns
Competition authorities scrutinise bundling when a dominant firm uses it to push customers into a second product, shutting out rivals. Famous antitrust cases have involved software being bundled with operating systems.
V For shoppers
A bundle is good value only if you would use most of what is in it. Price out the parts you actually want separately before deciding.
This is general educational information about economics, not financial, investment, or tax advice. Consult a qualified, licensed professional before making financial decisions.
Further reading
- 1. Why Prices End in .99
- 2. Surge Pricing: How Ride-Hailing Sets Prices in Real Time
- 3. The Freemium Model: How Free Products Make Money