Disney+ Open For More Bundle Opportunities
Earlier this year, Disney launched a new bundle in the United States with Warner Brothers Discovery, offering Disney+, Hulu and Max for $16.99/month with ads and $29.99/month without ads. This new bundle offers savings of up to 38% compared with the price of the services purchased separately.
This bundle offers all three streaming services together all through a single monthly subscription, while providing a wide selection of content from the biggest and most beloved portfolio of brands in entertainment, including ABC, CNN, DC, Discovery, Disney, Food Network, FX, HBO, HGTV, Hulu, Marvel, Pixar, Searchlight, Star Wars, Warner Bros., and many more.
Recently, Nami Patel, Disney’s senior vice president of strategy and business development, said that the agreement is “working really well,” while speaking with Deadline at the RTS London Convention.
She added that the bundle with Max is helping viewers spend more time on the platforms and has reduced subscriber churn. However, Nami was not specific about numbers, so it’s unclear how many people have signed up for the bundle.
Patel also revealed that, generally, Disney is opening for more bundles in the future and revealed that any future deals will be assessed on a case-by-case basis and will depend on territory. She feels that bundling offers a “great alternative.”
“Partnerships will always be a key benefit to consumers, and I think we’ll see more and more of that,”
Recently, Warner Brothers Discovery CEO David Zaslav revealed that they’ve added 6 million new subscribers to Max in the current quarter, which apparently has been helped by the bundle. Much like Disney, WBD is looking to bundle its streaming services with other products, such as, most recently, Charter Spectrum cable, in an effort to boost subscribers and reduce the churn of people unsubscribing.
Roger’s Take: Disney already bundles its streaming services with telephone providers and some banks, plus only this weekend, it signed a new deal to include Disney+ in some DirecTV packages, so I wouldn’t be surprised if we see more deals like this in the future, possibly even a super bundle with all of the major apps together for a discounted price, as churn becomes the biggest problem for these streaming services. While we all got used to the idea of streaming platforms having no ads, being available separately, and having no long-term contracts, the industry is looking at ways to bring back some of those elements that made cable TV so successful for the studios for decades. If you can get a bundle of services together, the chances of you unsubscribing are reduced since you’re more than likely using at least one or more of them, making it feel better value for money and less inclined to cancel.
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