In a streaming era where more and more platforms are joining forces, Netflix isn’t interested in following that trend — at least, not directly.
In a message to shareholders as part of its Q2 earnings report on Thursday, the streaming platform touched on its approach to partnerships, explaining that, from its early days, it saw clear benefits to partnering with device makers, as well as pay TV and mobile operators. Netflix doesn’t see direct bundles with other popular streaming platforms, however, as such a straightforward “win-win.”
“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,” the message reads. “This has driven industry leading penetration, engagement and retention for us, which limits the benefit to Netflix of bundling directly with other streamers.”
In a footnote, Netflix acknowledged that third-party operators may include Netflix in a streaming bundle with other services. This is likely a reference to Comcast's Streamsaver, which bundles Netflix with Apple TV+ and Peacock.
Netflix also didn’t make a secret of the kinds of direct bundles it was referencing. In the letter to shareholders, Netflix specifically hyperlinked to Disney and Warner Bros. Discovery’s May 2024 announcement of a Disney+, Hulu, and Max bundle.
Netflix’s statement on the matter might seem a little arrogant, but it has reason to run a victory lap. It reported today yet another quarter of both revenue and subscriber growth, bringing in 8 million new subs in Q2 for a total of 277.65 million. That success, however, comes with a bit of a caveat, as Netflix is bracing for a drop in paid net adds in the coming quarter.
Alex Stedman is a Senior News Editor with IGN, overseeing entertainment reporting. When she's not writing or editing, you can find her reading fantasy novels or playing Dungeons & Dragons.
