Theo Whiteman/HBO
- Early data shows the Disney and Max bundle beats Netflix in terms of subscriber retention.Three months after its launch, 80% of subscribers stuck with Disney and Max.With Netflix dominating, analysts have predicted a "mega-bundle" could arrive in the coming years.
New data suggests there's one clear way streaming services can compete with Netflix: bundling.
A power-in-numbers approach could pose a threat to Netflix's unrivaled loyalty in the streaming market.
In terms of subscriber retention, the Disney and Max bundle — which launched in July and starts at $17 — came out on top in the months following its launch, according to new data from the analytics company Antenna.
From July to September 2024, 80% of subscribers stayed with the service. That put it ahead of Netflix, which kept 74% of customers over the same period.
Disney's in-house bundle — without Max — also trounced individual services like Hulu, Disney, and Max in terms of retention.
WBD reported earnings yesterday for the first time since splitting its linear TV business from studios and streaming. It announced 117 million subscribers and forecasted 150 million by 2026.
While that's still a fraction of Netflix's 300 million, EMARKETER analyst Ross Benes said "aggressive" bundling had kickstarted growth at WBD, where US subs have remained flat "even after adding live sports."
"Bundles viewers tend to pay a lower price, thus generate lower [average revenue per user] generally," Benes said, "but bringing them into the fold expands audience reach."
Analysts have previously touted bundling as a prospective remedy to Netflix's dominance.
TD Cowen analysts have predicted a mega-bundle comrpising legacy TV players could be afoot in coming years as the best path to profitability amid surging content and marketing costs.
Warner Bros. Discovery, Netflix, and Disney didn't respond to requests for comment.
