Who Stands to Benefit Most from New Bundle of Apple TV+, Netflix, Peacock?

The bundling dominoes are continuing to fall. First came the announcement that Disney+, Max, and Hulu would become available in a new streaming bundle sometime this summer. This move touched off a round of speculation as to which streamers might decide to team up next. Well, it didn’t take long to find out the answer; on Tuesday, Comcast CEO Brian Roberts teased that his flagship streaming service Peacock would be partnering with Apple TV+ and Netflix as part of a new bundle being offered exclusively to Xfinity internet subscribers. While the complete details have not yet been released about this forthcoming bundle, The Streamable’s experts are taking a look at who stands to benefit most from this new team-up, and who may end up being the biggest loser from the deal.

Key Details:

• Comcast will be able to attract new customers to its internet service with the bundle, which is critical as the company loses cable subscribers.
• The three streamers involved all get access to a customer base eager for more bundled streaming products.
• Paramount+ risks being left out in the cold as its competitors continue to band together.

The news that Apple TV+, Netflix, and Peacock were coming together to launch a new streaming bundle first broke on Tuesday at MoffettNathanson’s annual Media, Internet & Communications Conference. There, Roberts let slip that an official announcement of the new bundle was coming in the next few days.

With the limited information that we currently have, it does not appear that any of the companies involved in the bundle stand to lose anything from the partnership. The Streamable opined last week that Netflix would be best served by keeping itself out of any future streaming combinations, but that was before data from Antenna released earlier this week showed that Disney+ — and practically every other major streamer — was still outperforming Netflix in terms of new ad-supported subscribers. The new bundle could drive new customers to Netflix’s ad plan, especially considering that Roberts promised a “vastly reduced price” for the integrated product.

While Antenna’s data indicates that consumers are willing to pay at least $15.99 per month for the ability to stream Netflix’s must-have titles and library, streamers have learned that they are able to generate far more revenue per customer on ad-supported plans by collecting both subscription fees and ad revenue. This is likely especially true for Netflix, who can flex its status as the world’s largest streaming service in order to secure especially favorable ad rates.

For Apple TV+, the benefits appear clear as well. The small, but critically acclaimed streamer gets to put its original prestige series alongside two streamers with huge inventories of older titles, licensed shows, and blockbuster movies, not to mention Peacock’s expansive roster of live sports, without having to pay to add those things to its platform itself. This could expose Apple TV+’s own library to a whole new segment of customers who would never have subscribed to the streamer on its own, and help it finally expand past the 40-50 million subscribers that analysts have estimated that it currently has.

The clearest winner of the three services, however, is Peacock. That’s because its parent company Comcast will be the one selling the bundle to new customers, as it will only be available to subscribers to Comcast’s Xfinity internet plans. This will not only add to Peacock’s steadily growing subscriber base of 34 million, but it could convince some viewers to abandon their current internet providers in favor of Comcast going forward. That’s especially important for the telecom firm as it continues to lose cable subscribers; Comcast lost more than 2 million cable viewers in 2023, and it’s counting on revenues from its internet subscribers to help it manage the transition away from linear to digital entertainment.

Even if this bundle doesn’t attract a significant number of new broadband customers, if it simply gives current subscribers additional reasons to remain signed up, then that would be a win. And, if it happens to bring in a few new consumers interested in subscribing to the tried and true cable package, then that’s even better.

The biggest winners of all in the launch of a bundle of Apple TV+, Netflix, and Peacock are audiences. A Civic Science survey from March showed that viewers are desirous of more streaming bundles, but also concerned that bundles will lead to higher prices. The combo of Apple TV+, Peacock, and Netflix will offer viewers a highly diverse platform with many different types of content, including live news and sports options, high-quality prestige TV, and much more. If that product is offered at as steep a discount — as Roberts has intimated it will be — it could go a long way toward assuaging fears that bundling will create higher prices in the streaming market.

Paramount+ Left Out in the Cold

As things stand, the biggest loser from these recently announced streaming bundles is Paramount+. That streamer may not be long for this world anyway, as recent reports indicate that Paramount’s merger and acquisition talks with Sony and Apollo Global Management could see Paramount+ sold or dismantled if Paramount Global falls under new management.

But if Paramount+ does continue to exist in the long term, it will need a bundling partner of its own. Its options now appear to be dwindling, however. The streamer had been discussed as part of a new bundle with Peacock, and cross-company negotiations between Paramount and Comcast took place regarding that integration. But Bob Bakish — Paramount’s CEO at the time — reportedly held those talks without keeping his bosses fully informed of the details, and the deal he negotiated with Comcast was deemed unsatisfactory by the company’s controlling shareholder Shari Redstone.

Paramount+ was also discussed as a possible ally of Apple TV+ in a bundle in December 2023. But there have been no updates on that possible combination since, and now that Apple TV+ has already agreed to join one streaming bundle, there’s less incentive for it to seek out another with Paramount+.

To be sure, there are other streamers without bundle partners at the moment. Prime Video is going it alone these days, but viewers can use the Prime Video Channels platform to add bonus subscriptions to services like Max, AMC+, STARZ, and many others. That’s not exactly a bundle in the same style as Apple TV+, Netflix, and Peacock’s newest combination, but it still allows Prime Video customers to add various new types of entertainment to their Amazon subscription. All Paramount+ subscribers can do if they want new content within the same app is upgrade to Paramount+ with SHOWTIME. Of course, once Paramount’s ownership question is answered, there’s nothing that would prevent it from joining one of these recently announced bundles, but until that happens, it does appear that Paramount+ has been left with a dwindling number of bundling partners.

The future of Paramount+ is uncertain enough as it is without the streamer having to risk being left behind in the new wave of bundling that seems to be sweeping through the streaming industry. Apple TV+, Peacock, and Netflix struck while the iron was hot, and we here at The Streamable believe that they will reap the benefits while Paramount+ executives try to figure out what’s next.