by Thinus Ferreira
Netflix says it's strong enough as a viewing destination and streaming service on its own and won't bundle itself with other video streaming services, although it will consider working with device makers, pay-TV and operator partners.
On Thursday night Netflix released its second quarter results and announced that it had added another 8.05 million subscribers worldwide, taking it to 277 million users globally.
Netflix earlier said that from 2025 it won't release its subscriber numbers anymore and will opt to release "user-engagement" metrics since it tells a better story about the streamer's performance.
In its latest shareholder letter Netflix said it won't bundle the red "N" with other streamers like Disney+, Warner Bros. Discovery's Max not available in South Africa, or any of the others global players like Amazon Prime Video or Apple TV+.
"We havent bundled Netflix solely with other streamers like Disney+ or Max because Netflix already operates as a go-to destination for entertainment thanks to the breadth and variety of our slate and superior product experience," it said in its letter.
"This has driven industry-leading penetration, engagement and retention for us, which limits the benefit to Netflix of bundling directly with other streamers."
Netflix says it will consider bundling the streamer with device makers, operator partners and pay-TV and is for instance available as an app through MultiChoice's DStv Explora Ultra decoder alongside its own Showmax streamer and Amazon Prime Video.
"From the early days of streaming, we saw partnerships with device makers and pay-TV and mobile operators as key to ensuring Netflix was easy to find and use."
"These partnerships are a win-win — making it simple for people to discover, sign-up, use and pay for Netflix," the streamer says.
"In turn, our device and operator partners benefit through increased device sales from consumers seeking devices integrated with Netflix and greater customer acquisition and higher retention as well as the opportunity to upsell higher value data or content packages."
"In some partnerships, operators may include other streaming services in a bundle with Netflix and the operator's services."
Netflix says that "If we execute well - better stories, easier discovery and more fandom - while also establishing
ourselves in newer areas like live, games and advertising, we believe that we have a lot more room to
grow."
"Commentators often ask if Netflix
needs so many shows and films, and the answer is an emphatic yes," the streamer says.
"With 278 million member households and more than two people per household on average, we're programming for an audience of over
600 million. It's a huge number and to delight this many people, we need lots of great stories that appeal to
many different tastes and moods."
"It's why we continue to increase the investment in our programming,
even as many of our competitors are pulling back."
Improving content discovery
Netflix says it's improving content discovery on its video streaming service but "we believe we can do much more to improve discovery on Netflix".
"We recently began testing
a new, more intuitive TV homepage design, our biggest update in a decade," the streamer says.
"This new interface provides
more visible title information at a glance - including synopsis, genre and ratings. Title previews are also
larger and more dynamic, with more immersive trailers and bigger box art to make browsing easier."
"We've also simplified the navigation bar and moved it to the top of the page to create quicker, easier
short cuts. And this new design includes My Netflix, which has everything members have saved or
watched and was previously only available on mobile. As always with any changes to our product, we'll
listen to the feedback, learn and continue to improve the experience over time."
