Embrace of streaming television bundles is growing
Consumers have many streaming services that they can pick to pay for
Disney, Warner Bros streaming services bundle 'defeating its own purpose'
Bobby Iaccino, co-founder of Path Trading Partners, weighs in on the effectiveness of bundling streaming platforms and why he believes the move "defeats its own purpose."
Companies have been embracing streaming bundles more and more.
The latest to publicize plans to offer a package of streaming service became Comcast this week, when the CEO of the media giant that owns NBCUniversal’s Peacock on Tuesday announced its "StreamSaver" bundle.
The upcoming bundle, which Comcast CEO Brian Roberts discussed during his appearance at the MoffettNathanson Media, Internet & Communications Conference, will consist of Peacock, Netfix and Apple TV+.
Comcast says its streaming bundle will include Peacock, Netfix and Apple TV+. (Jakub Porzycki / NurPhoto / File / Getty Images)
"We’ve been bundling video successfully and creatively for 60 years. And so this is the latest iteration of that, and I think this will be a pretty compelling package," he said.
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When Comcast’s Peacock, Netflix and Apple TV+ bundle rolls out, the media giant will make it "available to all customers, not just one segment or another," according to Roberts. The company is aiming to introduce it this month.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CMSCA | NO DATA AVAILABLE | - | - | - |
| NFLX | NETFLIX INC. | 847.05 | +23.09 | +2.80% |
| AAPL | APPLE INC. | 228.02 | +3.02 | +1.34% |
"And those three products will come at a vastly reduced price to anything in the market," the Comcast CEO said.
Comcast, which is seeking to bolster its broadband, isn’t alone in its pursuit of bundling streaming services.
Competitors Disney and Warner Bros. Discovery last week unveiled one of their own. That bundle, which will have Disney+, Hulu and Max, will debut in the summer.
Disney and Warner Bros. Discovery recently unveiled their own streaming service bundle that will include Disney+, Hulu and Max. (Rafael Henrique / SOPA Images / LightRocket / File / Getty Images)
It "will be available for purchase on any of the three streaming platform’s websites and offered as both an ad-supported and ad-free plan," Disney and Warner Bros. Discovery said at the time.
DISNEY ENTERTAINMENT AND WARNER BROS. DISCOVERY ANNOUNCE NEW BUNDLE WITH DISNEY+, HULU, MAX
JB Perrette, the head of global streaming and games at Warner Bros. Discovery, said the Disney+, Hulu and Max bundle "will help drive incremental subscribers and much stronger retention."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 113.54 | -1.54 | -1.34% |
| WBD | WARNER BROS. DISCOVERY INC. | 9.47 | +0.25 | +2.71% |
Increasing subscriber counts and reducing cancellations of existing users have been factors contributing to streaming service bundles, particularly as value-seeking consumers continue to be confronted with a slew of platforms that each charge for memberships. Some consumers only subscribe to a service long enough for them to watch a show or movie before canceling, a practice that companies operating streaming platforms are looking to curb.
Warner Bros. Discovery CEO David Zaslav recently said the industry will see more "meaningful bundling" in the longer term, whether through a third party or through streaming companies. (iStock)
There are other potential benefits of bundling, too, with Warner Bros. Discovery CEO David Zaslav recently suggesting, for example, that its bundle with Disney could bring "increased efficiencies and greater marketing effectiveness" down the line.
In February, Zaslav predicted the industry would see more "meaningful bundling" in the longer term, whether through a third party or through streaming companies themselves.
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He said this month that it was "much more efficient, better ARPU [average revenue per user] and a much better business if we can do it ourselves."