Netflix isn’t against creating a streaming bundle — just a certain type of bundle.
In a Thursday letter to shareholders that accompanied its Q2 financial results, the company noted why you won’t see it partnering directly with competitor streamers including Disney+ or Max, but has teamed up with distributor Comcast to launch a package including Peacock and Apple TV+.
“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 said. “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.”
Popular on Variety
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.”
In this statement release alongside the streamer’s solid second-quarter earnings, Netflix specifically linked out to Disney’s May announcement of a bundle between Disney+, Hulu and Max.
During the April 1-June 30 quarter, Netflix reports it gained 8.05 million net paid customers and is steadily building toward 280 million global subs. Netflix also says its revenue for the quarter was up 17% year over year, during which it turned a profit of $2.15 billion (versus $1.49 billion in the comparable 2023 quarter).