Service bundling trend
Streaming companies are increasingly bundling their services with those of peers to draw more users. In April, music streaming company Spotify (SPOT) and on-demand video streaming company Hulu started offering their services together for $12.99 per month, saving users of both platforms ~$5 monthly.
Recently, Comcast (CMCSA) made a similar deal with streaming giant Netflix (NFLX). Although Comcast hasn’t released the cost of the proposed bundled service, it could cost less than subscribing to the companies’ services separately.
Jupiter Telecommunications set to bundle Netflix with its service
According to Variety, subscribers of Jupiter Telecommunications, Japan’s largest cable TV company, are set to have access to Netflix by late 2019 through a special receiver. Jupiter, which has 5 million subscribers, has seen subdued growth over the last few years, like Netflix. Its partnership with Netflix may encourage current subscribers to stay while enticing non-subscribers to come on board. However, Japanese customers would still have the option to subscribe directly to Netflix without having to go through Jupiter.
The on-demand streaming business did not gain traction until recently, and many Japanese users have stuck with traditional pay TV. However, in the last couple of years, new local over-the-top players have entered the space.