Binge on
Netflix announced it will stick with its binge model strategy of releasing entire seasons all at once. Customers will still have a choice of watching as much as they want and when they want. This is particularly timely, given the recent release of Stranger Things. While Netflix is still releasing episodes in batches, they have begun to stagger seasons for some recent high-profile series, including Ozark and Stranger Things.
The NPD Take:
- The retention of binge viewing for scripted content provides Netflix with a differentiator at a time where competition is beginning to impact subscriber churn.
- This strategy requires a large array of programming since viewers typically burn through a season in one to four weeks; not many other streamers can implement this approach.
AT&T severs ties with HBO Max
AT&T dropped HBO Max as a bundled perk for new customers on its highest-tier unlimited wireless plan. Previously, HBO Max had been available for no extra charge with the AT&T Unlimited Elite wireless plan, and, prior to the launch of HBO Max, the carrier had offered HBO for free on its most expensive mobile plans going back to 2017. AT&T customers who have received HBO Max for no additional charge in previous offers will still have access to the streaming service if they keep their plan.
The NPD Take:
- While there will be some level of loss due to this shift, the company now has more flexibility to establish other mobile carrier promotions which could have broader reach.
- The ad-supported HBO Max tier provides easier opportunities to establish new bundled promotions.