The news: Apple TV and NBCUniversal’s Peacock are partnering to offer a streaming bundle for $15 per month starting Monday. The bundle provides customers savings over 30% compared with paying individually for Apple TV and Peacock’s premium ad-supported plans.

The advantage: Beyond cost-saving opportunities for consumers, bundling offers key benefits for platforms and advertisers alike.

• With the majority of households only subscribing to around three paid streaming services and cancellations steadily rising, bundling provides a key opportunity to retain subscribers and compete in the fragmented streaming ecosystem. For example, the Disney, Hulu, and HBO Max bundle retained 80% of subscribers three months after signup, surpassing household names like Netflix in the same period.
• For brands, bundles offer expanded ad opportunities. Bundles offer a chance to reach viewers across multiple content verticals in one buy, sidestepping viewer fragmentation across services. Bundles simultaneously unlock opportunities for cross-platform storytelling, giving advertisers a chance to create coordinated campaigns across unique content types.
• And by offering lower churn than non-bundled services, bundled platforms offer more predictable engagement for advertisers.

Boosting platform potential: The partnership is a key move for two platforms that are struggling to compete with streaming leaders like Netflix, Prime Video, and Hulu.

• Apple TV has struggled with profitability and user engagement. While its subscriber base is increasing, Apple TV is losing more than $1 billion annually, and only 22% of CTV users watched the service in 2024, per LG—a much lower share compared with its competitors.
• Peacock has also faced several challenges related to profitability and competition in the streaming market. Despite notable growth in subscribers and revenues, the platform remains unprofitable and is still struggling to prove its value to consumers—an issue bundling could help address.

What it means for marketers: The new bundle provides potential for advertisers who have been hesitant to invest in Apple TV and Peacock respectively because of a lack of proven results. The potential of each platform to drive ad reach and help brands achieve marketing goals is now doubled, making Apple TV and Peacock a more valuable and practical investment for advertisers.

The most successful strategies will capitalize on the unique content offerings of each platform, ranging from sports like the NBA to popular scripted series, and tailor ad materials to these offerings.