Netflix Dismisses Bundling With Disney+ Or Max
With so many different streaming services, many of the studios are looking at ways of trying to get more signups and to reduce churn (losing subscribers). One of the ways many platforms are starting to do this is by bundling with other streaming platforms, along with banks, mobile phone providers and cable companies.
Disney has already had lots of success with bundles, including offering Disney+ with Spectrum cable and with many phone providers. Plus, the Disney Streaming Bundle, which includes Disney+, Hulu, and ESPN+, has been a huge benefit in reducing churn. Disney is also planning on launching a new bundle later this year with Max and the new sports platform Venu.
Today, to go alongside the release of the latest quarterly results, Netflix released a letter to shareholders, which addressed the idea of bundling Netflix with other streaming services like Disney+ or Max.
“From the early days of streaming, we saw partnerships with device makers and pay TV and mobile operators as key to ensuring Netflix was easy to find and use. These partnerships are a win-win — making it simple for people to discover, sign-up, use and pay for Netflix. In turn, our device and operator partners benefit through increased device sales from consumers seeking devices integrated with Netflix and greater customer acquisition and higher retention as well as the opportunity to upsell higher value data or content packages. We haven’t bundled Netflix solely with other streamers like Disney+ or Max because Netflix already operates as a go-to destination for entertainment thanks to the breadth and variety of our slate and superior product experience. This has driven industry leading penetration, engagement and retention for us, which limits the benefit to Netflix of bundling directly with other streamers.”
However, in the small print of the release, they stated, “In some partnerships, operators may include other streaming services in a bundle with Netflix and the operator’s services,”
This ties in with today’s other new announcement, where Peacock is now available in a new bundle with Netflix, which is only available for Verizon customers, who purchase a year of Peacock Premium and also get a year of Netflix Premium at no extra charge.
Roger’s Take: There has been lots of discussion about many of the studios wanting to team back up to bundle their streaming services together to recreate the cable system. However, from Netflix’s point of view, they are the king of streaming, and they don’t need to team up with any other studio to bundle since they are already the default choice. With many of the major studios looking to license out their content to Netflix, they don’t need to do so, but that doesn’t mean cable and phone providers can’t start putting together their own bundles to try to keep customers on their networks.
Do you think Netflix will bundle with Disney+? Let me know on social media!