Cable subscription giant Comcast will now offer subscriptions for streaming giant Netflix in their TV bundles, as a move towards allowing consumers more bundling options. While Netflix has remained dominant in the streaming field, they are looking to expand even further by getting into as many cable boxes as possible.
There are many more a la carte options at consumers' fingertips now, much of which are associated with streaming platforms such as Netflix, Hulu, and Amazon Prime Video. Consumers looking to save a few bucks have been picking and choosing their entertainment services with more discretion and customization than ever before, which is understandable considering how many options there truly are. This led many experts and analysts to worry about the state of traditional network and cable television; cord cutters were allegedly destroying an entire industry. But that industry has struck upon an intriguing new business model that may lure some of those lost customers back into the fold.
THR reports that Comcast will now provide Netflix subscriptions bundled with their Xfinity X1 packages - both old and new. Comcast conceded to Netflix's unparalleled success, saying that the streaming giant provides one of the "most popular on-demand services" out there right now, making it an "important supplement" to their cable package. Netflix's global head of business development, Bill Holmes, added: "Our partnership with Comcast on Xfinity X1 has brought easy access to Netflix for our mutual customers. We can’t wait to introduce more X1 customers to Netflix with Xfinity’s new packaged offers."
This match-up is right in line with Netflix's goals. The company has recognized consumers' need for simplicity and has been attempting to secure a steady presence on cable box platforms. Netflix already has similar agreements with companies such as Atlantic Broadband, Grande Communications, and Suddenlink Communications. But that's not all; they are also looking to break into the film industry by pushing releasing Netflix Original movies in theaters.
The team-up between Netflix and Comcast is being billed as a convenience for the two companies' mutual subscribers. Comcast says around 60 percent of their consumers are subscribed to the Xfinity X1 package. Of those users, approximately half are also Netflix subscribers. According to Comcast, this bundle will be of great benefit to those customers. Indeed, this will save them a few dollars on the Netflix subscription and will provide the convenience of having two different content providers on one platform, but consumers who are looking to keep their subscriptions separate may not be interested in yet another TV bundle. Of course, this move also brings Netflix closer to premium cable networks like HBO, which have been bundled in cable packages for years.