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Netflix has been surpassed as the US's top streamer in terms of customer loyalty.
A rival package is outperforming its competitors in retaining subscribers for the first time.
In July, a streaming bundle consisting of Disney+, Hulu, and Max was launched by Disney and Warner Bros. Discovery, and it has now surpassed Netflix in subscriber retention.
It was found that approximately 80 percent of subscribers retained the bundle after three months, whereas 74 percent of Netflix subscribers kept their service during the same period, as per a report from the media analytics firm Antenna.
This $16.99-a-month package grants viewers access to popular shows like The Bear and The White Lotus.
A remarkably high level of customer retention suggests a significant shift in the industry dynamics. Netflix has traditionally been the benchmark for retaining its user base.
The bundle is outperforming both Disney's Duo package, which combines Disney+ and Hulu, and its Trio package, which also includes ESPN+.
The bundle had approximately 2.2 million paying subscribers by December 31, according to Antenna's findings.
Subscriber retention is a major challenge for streaming services. Many consumers sign up for a free trial, then cancel once they've watched the desired show.
There are nearly twice as many casual subscribers as there are long-term users of streaming services, according to Antenna.
The surge in bundles has led some critics to suggest that streamers are essentially reviving the traditional cable TV model, where consumers pay a single price for a collection of content from various providers.
"Warner and Disney to some extent have constructed their entire business around the cable bundle, so they're very accustomed to bundling," Antenna's strategy director Brendan Brady told the Journal.
'As we progress, we are increasingly noticing its emergence again.'
The Disney+, Hulu, and Max bundle costs $16.99 a month with ads or $29.99 a month without ads.
By purchasing the bundle, customers can enjoy a 43 percent saving, which is the difference in cost when compared to subscribing to each service individually.
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The new product is not intended to disrupt Fox's position within the conventional television package.
CEO
The app will merely bundle its current sports and news content, and Murdoch stated they do not anticipate incurring any additional costs for exclusive rights or incremental rights.
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