Netflix doesn’t think it needs to bundle with other streamers — yet. Here’s why

While other streaming services are increasingly turning to bundles to help boost subscriber numbers, Netflix (NFLX+11.12%) says it doesn’t need them.

Netflix co-CEO Ted Sarandos told investors on Thursday that a lot of the company’s competitors are using bundles to “find growth in their businesses.” He added that this made sense and was a “comfortable” business model for legacy media companies, given “the narrow scope of the libraries on these services and the fairly limited engagement.”

Instead, he said, Netflix is focused on adding more value to its own package, which he characterized as “amazing series and films and now games at a remarkably low price all in one place.”

Sarandos’ comments come at a time when other media companies are struggling to catch up with the dominant Netflix and are still trying to figure out how to make their services consistently profitable. One emerging strategy to boost subscriber numbers is bundling. For example, in July, Disney and Warner Bros. Discovery teamed up to offer a new bundle that combines all of their streaming platforms into one monthly subscription plan.

Sarandos was also reaffirming the sentiments expressed in Netflix’s letter to shareholders included in its strong third-quarter earnings report on Thursday.

“Programming for such a large, engaged audience, with so much variety and great quality, is hard. It’s why streaming services which lack our breadth of content are increasingly looking to bundle their offerings,” the letter said.

And so far it seems like investors are in agreement, as Netflix stock jumped 9% on Friday.

“Overall, we believe Netflix is well positioned to remain a long-term winner in the streaming space,” wrote William Blair analyst Ralph Schackart in a note on Friday.

Simlarly Wedbush Securities analyst Alicia Reese wrote in a note on Friday, “Netflix has established a virtually insurmountable lead in the streaming wars. We expect it to maintain this competitive edge while rivals struggle to replicate its business model.” She also expressed optimism about Netflix’s growing ad business suggesting it could “become the primary growth driver by 2026.”