Is bundling the answer?

I spoke with Rob Glaser, founder, CEO and Chairman of RealNetworks, last week about an interesting proposition (see my On the Hot Seat interview below). Glaser says that mobile operators should bundle all their data services and charge a flat fee instead of the current a la carte method. He theorizes that if operators bundle their data services for $10 to $20 per month, adoption rates will dramatically increase.

This business strategy isn't unique. It's actually the philosophy that the cable TV industry used to compete against broadcast TV. By bundling together a bunch of different niche programming into a basic cable package, cable operators were able to substantially grow their subscriber base. Eventually those programmers were able to sell advertising to their targeted base and profit from this strategy. As Glaser says, the benefit of bundling is that operators will grow the base and subscribers will get more perceived value for their money.

Do you think this bundled strategy is a winner?  Glaser says that RealNetworks has been talking to operators about this proposal, and he hopes to launch a discussion to propel the theory forward. -Sue