Netflix isn’t in opposition to making a streaming bundle — only a sure kind of bundle.
In a Thursday letter to shareholders that accompanied its Q2 monetary outcomes, the corporate famous why you received’t see it partnering immediately with streamer opponents together with Disney+ or Max, however has teamed up with distributor Comcast to launch a package including Peacock and Apple TV+.
“From the early days of streaming, we noticed partnerships with system makers and pay TV and cellular operators as key to making sure Netflix was simple to seek out and use,” the streamer stated. “These partnerships are a win-win — making it easy for individuals to find, sign-up, use and pay for Netflix. In flip, our system and operator companions profit via elevated system gross sales from customers searching for units built-in with Netflix and higher buyer acquisition and better retention in addition to the chance to upsell greater worth knowledge or content material packages.
We haven’t bundled Netflix solely with different streamers like Disney+ or Max as a result of Netflix already operates as a go-to vacation spot for leisure because of the breadth and number of our slate and superior product expertise. This has pushed trade main penetration, engagement and retention for us, which limits the profit to Netflix of bundling immediately with different streamers.”
On this assertion launch alongside the streamer’s solid second-quarter earnings, Netflix particularly linked out to Disney’s May announcement of a bundle between Disney+, Hulu and Max.
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