Netflix is clarifying its stance on bundling. As part of the company’s second quarter earnings report of 2024, the streamer explained why it won’t be bundling with other major services anytime in the near future.
“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,” Netflix said on Thursday as part of its Q2 earnings statement. “This has driven industry leading penetration, engagement and retention for us, which limits the benefit to Netflix of bundling directly with other streamers.”
This isn’t to say that Netflix has fully denounced the bundling trend, however. The streamer has dipped its toes in when it comes to partnering with select companies, such as Verizon’s current deal that combines both a Netflix Premium and a Peacock Premium subscription for $80 a year. Verizon also has a bundling deal that combines the ad tier versions of Netflix and Max for $10 a month, and Comcast has a “StreamSaver” bundle that combines Peacock, Apple TV+ and Netflix, which costs $15 a month.
The difference is that these bundles are through Internet providers rather than directly with Netflix’s streaming competitors.
“Bundling” has become one of the buzziest words of 2024. From the Disney-owned bundle that combines Disney+, Hulu and ESPN+ to the cross-platform sports offering Venu that will combine content from Fox, Warner Bros. Discovery and NBCUniversal, nearly every major streamer has announced its own bundling combination.
In that regard, Netflix’s decision to stay somewhat away from the bundling race is notable.
Netflix had a strong second quarter for 2024, beating Wall Street expectations and posting a 17% year-over-year increase in revenue. The company also increased its profits by 44% and increased its subscribers by 8 million during a three-month period.
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