Why Bundles Might Not Be the Future of Streaming
By Movieguide® Contributor
For a while, it seemed that bundles were the next phase of streaming, but Netflix may have just killed their future during its Q3 report.
“Programming for such a large, engaged audience, with so much variety and great quality, is hard. It’s why streaming services which lack our breadth of content are increasingly looking to bundle their offerings (selling and discounting their services together, channel offerings, etc.),” the company said during its report. “Netflix is already an extraordinary package of series and films (licensed and original), and increasingly games and live events — all in one place and for one price, easy to use and great value for money.”
Netflix’s unfavorable view of bundling is extremely telling for the industry as the streaming giant almost always sets the trends that other streamers follow. In recent years, Netflix has greatly influenced the landscape of streaming, from password crackdowns to introducing ads.
The company, however, is not always the law and sometimes makes decisions that are not followed by its peers. Netflix’s introduction of games, for example, has not been emulated by any of its competition, despite the company touting it as a core feature in its long-term plans.
READ MORE: NETFLIX UNVEILS BUSINESS STRATEGIES TO COMPETE IN STREAMING
Netflix’s aversion to bundling is not new. While the platform is currently available in a bundle with Peacock and Apple TV+ through Xfinity, earlier this year, it shut down the idea of coupling itself with larger platforms like Max or Disney+.
“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 during its Q2 report. “This has driven industry leading penetration, engagement and retention for us, which limits the benefit to Netflix of bundling directly with other streamers.”
Instead, Netflix continues full steam ahead with the new, original content that has made it so popular in the first place. While it admitted that 2024 has been subpar content-wise, it believes that its lineup to end the year leaves much for fans to be excited about.
“The first half of this year, our lineup was much lumpier than we liked, and it was primarily because of the work stoppage. It did hit UCAN [U.S. & Canada] the hardest, but there were some effects of that felt in production around the world,” said co-CEO Ted Sarandos. “We’re moving closer and closer to a more normalized output schedule now, series are a little more on track than film, but neither are fully recovered.”
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