Netflix recently explained why it has yet to do any streaming bundles with some of the biggest streaming platforms on the market, like Max or Disney+.
During a letter to shareholders that was sent alongside its Q2 financial results on Thursday, the company specified why it won’t partner with strict streaming platforms like Max and Disney+, despite recently announcing a package with Comcast that would include Peacock and Apple TV+.
Why won’t Netflix do certain streaming bundles?
“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,” the streaming platform said in its letter (via Variety). “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.”
The recently announced package will see Peacock, Netflix, and Apple TV+ all bundled together for a reduced price for Comcast broadband and TV customers.
The streamer’s letter outlined why a deal with just streaming platforms like Max and Disney+ just doesn’t make sense for them due to Netflix’s status as a “go-to destination” already.
Disney+ Has the Best Bundle in the Business
Sign-up today for access to Disney+, Hulu, and ESPN+
The streamer 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. This has driven industry leading penetration, engagement and retention for us, which limits the benefit to Netflix of bundling directly with other streamers.”
