Netflix added 5 million subscribers in Q3 and couldn’t resist taking a jab at its competitors’ latest bundling strategies. In typical fashion, Netflix threw shade at the “lack of breadth” from rivals scrambling to bundle services like Disney+, Max, Hulu, and now Apple TV+ to stay afloat. Meanwhile, Netflix continues to ride solo, boasting that it offers a package so loaded with original series, films, games, and live events that there’s no need for bundling.
In their letter to shareholders, Netflix laid it out: “Programming for such a large, engaged audience, with so much variety and great quality, is hard. It’s why streaming services that lack our breadth of content are increasingly looking to bundle their offerings.” Instead of bundling with others, Netflix claims it already delivers an “extraordinary package” of content across all categories—from series to games—in one place, under one logo.
But here’s the irony. By definition, Netflix itself is a bundle. The dictionary defines a bundle as “a collection of things or quantity of material tied or wrapped up together.” So, doesn’t that make Netflix a bundle already? Sure, it’s available in different pricing tiers, but it’s packing an insane variety of content—series, films, games, and now live events—all wrapped up under that iconic red “N.” In other words, Netflix is the bundle, and the industry is too busy playing catch-up to notice.
And here’s a thought: Netflix could drop the mic on the entire legacy media game by launching a Channels business, just like Amazon Prime Channels or YouTube Primetime Channels. Imagine Netflix bundling other streamers under a Netflix Channels program. You could subscribe to Shudder via Netflix for $6.99, with AMC Networks taking 70% of that revenue ($4.89) while Netflix grabs 30% ($2.10) just for being “Netflix”. This is the same game it built on—leveraging other companies’ content to keep users hooked. A bundle without calling it a bundle. Genius and purely savage.
Strikes, Pudding, and Patchy Programming
Ted Sarandos didn’t shy away from acknowledging that Netflix’s 2024 programming slate wasn’t as smooth as they’d like. The aftermath of Hollywood’s writers’ and actors’ strikes disrupted production. Ol’ Ted admitted the lineup was “patchier than normal.” However, Netflix still delivered hits like The Perfect Couple with Nicole Kidman and Ryan Murphy’s Monsters: The Lyle and Erik Menendez Story. Not so bad for a “lumpy” first half.
As for Hollywood creatives still griping about the loss of backend deals, let me put it bluntly: stop crying. Netflix changed the rules, offering upfront payouts so talent wouldn’t have to wait years for rerun profits. If the deal makes you cry, don’t take it. This is what I call “crying in your pudding.” Eat the pudding or don’t, but quit the sob stories. Netflix isn’t looking back, and neither should the creatives who cashed those upfront checks.
Before you address your complaints, I must emphasize that I’m primarily talking about those who cashed those upfront checks and now have a problem with it.
Ad Tiers and Revenue Growth: Netflix’s 2025 Forecast
While the competition is focused on bundling, Netflix’s ad-supported plan is gaining ground. The ad tier accounted for over 50% of new sign-ups in Q3 and grew 35% quarter-over-quarter, though Netflix didn’t specify what exactly it’s growing from?
That said, ads aren’t about to become Netflix’s cash cow just yet. They’re setting up for long-term gains, rolling out their ad tech platform in Canada next month and planning a broader launch in 2025. Sarandos clarified that ad revenue won’t be a major driver next year. Still, Netflix is forecasting 2025 revenue between $43 and $44 billion—up 11% from this year’s guidance. They’ve got plenty of other income streams in play.As the streaming wars rage on, competitors scramble to bundle up, and Netflix stays on its steady path to dominance. The funny part? Netflix doesn’t need to bundle with anyone—they are the bundle. And if they ever decide to embrace a Channels model, they’d have the last laugh—getting paid for offering rivals’ content while still being the ultimate destination.
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