Media companies are increasingly looking to bolster their streaming platforms through bundling with rival providers. This strategy is being implemented as streamers aim to increase subscriber fees, sell ads, reduce churn, and ultimately become profitable. Comcast recently announced that their Xfinity broadband, mobile, and cable TV subscribers will now have access to Apple TV+, Netflix and Peacock at a reduced rate through a new offering called Streamsaver. This bundled service will cost $15 per month, resulting in significant savings compared to subscribing to the services separately.
Comcast’s Streamsaver offering is not limited to just Apple TV+, Netflix, and Peacock. Current subscribers of Comcast’s Now TV, which streams content from 40+ live channels, can now subscribe to Streamsaver for $30 per month, which includes the previously available Peacock service for $20 each month. Additionally, Comcast has announced a rate increase for Peacock subscribers, with new subscribers set to pay $8 monthly for the ad-supported Peacock Premium and $14 monthly for the primarily ad-free Peacock Premium Plus starting July 18, preceding the Paris Summer Olympics.
The bundling announcement comes at a critical time for Comcast, which has been losing pay-TV subscribers due to cord-cutting while broadband subscriber numbers remain stagnant. On a positive note, Peacock has seen an increase in subscribers, attracting three million new users after exclusively streaming an NFL postseason game and the Oscar-winning film Oppenheimer. Despite these gains, Peacock reported a revenue loss of $639 million for the first quarter. Comcast CEO Brian Roberts expressed excitement over the StreamSaver launch, describing it as a “compelling package” aimed at adding value to consumers and strengthening Comcast’s broadband service offerings.
The Comcast announcement follows Disney and Warner Bros. Discovery’s recent unveiling of a bundled streaming service that combines content from Max, Disney+, and Hulu. This anticipated service, which includes content from Warner Bros., Disney, Fox, HBO, Discovery Communications, and more, is set to launch this summer. In a separate initiative, Warner Bros. Discovery, Disney’s ESPN, and Fox are also in the process of bundling their sports content under one app called Venu, which may face regulatory scrutiny for being anticompetitive.
Apart from these major bundling initiatives, other examples include Verizon offering a $10 monthly subscription fee to its “myPlan” consumers for ad-supported tiers of Max and Netflix, and a new agreement between Paramount Global and Charter Communications allowing Charter subscribers access to the ad-supported tiers of Paramount+ and BET+ at no additional cost. These agreements are reminiscent of the bundling seen in cable television, where numerous channels are offered under one monthly fee. As the streaming landscape continues to evolve, consumers may face challenges in finding content on various platforms, leading to frustration and longer search times.
