The streaming service war has officially entered a new phase.

As reported by the Wall Street Journal, Apple and Paramount are in negotiations to launch an Apple TV Plus and Paramount Plus streaming bundle. This could be the third streaming bundle, following the Disney bundle and the newly announced Netflix and Max bundle for Verizon. Since talks are still in the early stages, we don't know much other than that (obviously) this bundle will be cheaper than subscribing to both streaming services separately.

However, this move is not about offering a bundle to compete with other streaming bundles. Instead, this seems to be a solution to a serious problem affecting Apple TV Plus and Paramount Plus in particular: churn rates.

Without getting too technical, churn rate is how many people leave a streaming service in a given month. And Apple TV Plus and Paramount Plus share the distinction of having more people leaving their streaming services each month than the industry average.

Now, this does not mean that these are the worst streaming services. Many people cancel their subscription to a streaming service simply because they don't like the service, but also because they are not interested in what is being offered that month. In particular, streaming services are now regularly raising their prices; Apple TV Plus just raised its prices this past October, and Paramount Plus did the same earlier this year.

It is not surprising that these two streaming services have higher than average churn rates; Apple TV Plus chooses quality over quantity, and Paramount Plus does not have the classic and popular titles that other streaming services have. In particular, Paramount's signature show Yellowstone is streamed on Peacock, not Paramount Plus.

Bundling would go a long way toward solving the churn problem; with the quality of Apple TV Plus and the quantity of Paramount Plus, a streaming service comparable to Netflix or Max would be complete.

But to be the best bundle, Apple TV Plus and Paramount Plus would probably need to be the cheapest. I love Apple TV Plus originals like "Slow Horses" and "Severance," but even so, the Apple TV Plus and Paramount Plus bundle is not as attractive as the $9.99 Hulu and Disney Plus bundle, Disney Duo would not be as attractive as the $9.99 Hulu and Disney Plus bundle. Also, Netflix's bundle with Max would instantly be the best bundle in streaming once it becomes generally available, if not prohibitively expensive.

Still, nothing is set in stone yet. The only thing that is certain is that integration among streaming services has definitely begun. Time will tell whether it will benefit consumers or simply reduce competition.