Netflix Thinks It’s a ‘Go-To’ Streaming Destination. Do You Agree?
By Movieguide® Contributor
Netflix recently revealed why it won’t be bundling its service with competitors like Max or Disney+.
“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,” Netflix told shareholders in a recent letter.
The streamer continued, “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,” Netflix continued.
“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,” the letter stated. “This has driven industry leading penetration, engagement and retention for us, which limits the benefit to Netflix of bundling directly with other streamers.”
However, Netflix isn’t opposed to all partnerships — it teamed up with Comcast earlier this year for a bundle that includes its service, along with Peacock and Apple TV+.
“We’ve been bundling video successfully and creatively for 60 years, and so this is the latest iteration of that,” Comcast chief Brian Roberts told Deadline. “I think this will be a pretty compelling package.”
Netflix also bundled its premium services with Peacock Premium for Verizon, “with users who pay for the Peacock plan getting Netflix thrown in for no extra charge,” The Hollywood Reporter wrote.
“The deal, available through Verizon’s +play content hub, works like this: A customer buys a yearly Peacock subscription for $80, and will get a one-year Netflix Premium plan (valued at $275) for free,” the outlet continued. “It launches today, ahead of the 2024 Paris Olympics, which will stream all of NBC’s Olympics coverage and other live programming.”
These bundles have seen a major increase in popularity over the last few months. Movieguide® previously reported:
Many streaming platforms are in the process of collaborating with other services to offer more “bundle” models to the public.
One such change is with Paramount + who “is looking to combine…with another service.”
MSN reported, “Such an arrangement would follow the formal announcement in February of Venu Sports, a joint sports offering consisting of Disney’s ESPN, Fox and Warner Bros.; Disney’s intra-studio attempt to create a mega-service to subscribers who ante up for its trio of services: Disney+, Hulu and ESPN+; and Disney’s collaboration plan with Warner Bros. on a bundle consisting of Disney+, Max and Hulu.”
In addition to combining with another service, Paramount+ is in the process of merging with Skydance Media. “The entertainment giant Paramount will merge with Skydance, closing out a decades-long run by the Redstone family in Hollywood and injecting desperately needed cash into a legacy studio that has struggled to adapt to a shifting entertainment landscape,” AP News said.
Chair of Paramount Global Shari Redstone spoke on the changes. “Given the changes in the industry, we want to fortify Paramount for the future while ensuring that content remains king,” she said.
Why are streamers bundling services? Simply put, it cuts costs for businesses and consumers. MSN explained, “The dream of a more a la carte system, where you pay for what you watch, has turned out to elusive, primarily because there’s no way — at least yet — to adopt that where the cost doesn’t become onerous, and maybe even prohibitive, for many consumers.”
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