Netflix Hits Back At Disney+ And Max Streaming Bundles

The clarification from Netflix about their stance on streaming bundles came from their recent Q2 earnings statement.

As of today, nearly every major streaming platform has one and it is because of that rising popularity that Netflix felt the need to announce why they made this decision to stay away.

At the beginning of May this year Disney Entertainment and Warner Bros. Discovery announced a streaming bundle that would include Disney+, Hulu, and Max.

This would allow viewers to consume content from ABC, CNN, DC, Discovery, Disney, Food Network, FX, HBO, HGTV, Hulu, Marvel, Pixar, and much more on a single plan. Not only is this an astonishingly large entertainment package but it’s also the uniting of the three most popular streaming competitors.

Most media consumers have more than one subscription anyway, so the release of a streaming bundle like this would be extremely enticing, but Netflix doesn’t want any part of it.

Instead of streaming bundles, Netflix finds that partnering with device makers and internet providers like Comcast and Verizon, is the key to making sure it’s easy to use.

As further explained in the statement, “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.” 

Due to Netflix’s expansive content catalog and long-standing reputation, the company feels that streaming bundles wouldn’t bring much more to the table for them.

Instead, they want to continue to keep their focus on enhancing accessibility and user convenience.

According to financial reports. Netflix’s personal strategy of declining streaming bundles has been treating them pretty well. During its second quarter, Netflix gained over 8 million subscribers and its revenue was up 17% as compared to last year, turning them a $2.15 billion profit.

Currently, there is no reason for them to abandon their tried-and-true plan of action.

However, some consumer backlash may be on the horizon as Netflix just recently announced that they would be phasing out their Basic tier plan in the U.S. and France. Now, users who want the cheapest plan will have advertisements, excluded content, and a two-device limit.

Upgrading to no ads, the whole catalog and a four-device limit is nearly $10 more. Some Netflix customers may start to wonder if clinging to the platform is worth it when they could leave and go pay for a similarly priced streaming bundle and enjoy 3x the content.

For now, Netflix’s decision to stand alone and avoid partnerships with its competitors via streaming bundles is a valid strategy.  Currently, they are seeing a steady increase in profits as well as viewership just by doing what they’ve been doing.

However, as subscription prices continue to rise across all streaming services there may come a time when consumers see bundling as a necessity. Until then we applaud them for their individualism.