May 29, 2024

Verizon

According to sources familiar with the situation, Verizon intends to offer a new streaming bundle containing both Netflix and Warner Bros. Discovery’s Max.

The rumor was initially reported by The Wall Street Journal this Thursday, claiming that the bundle could only cost $10 per month, compared to the current $17 for those who might pay for both services separately.

If true, the bundle would be highly affordable, and it might increase subscribers. Even so, it is unusual for two streaming services that are usually rivals to agree to a bundle.

There are also benefits to doing so, as joining up would connect them to major distributors, such as Comcast, Amazon, Apple, and, in this case, Verizon.

The Known Details are as Follows

According to the unnamed sources, both streaming services would offer their ad-supported tiers.

However, joining up in a bundle could attract more customers to both companies and simultaneously reduce the number of those who cancel their subscriptions after watching the show or shows that initially attracted them to the service.

After launching certain highly-anticipated shows, Netflix has seen quite a few cases of this type of behavior. Still, it was clear that its subscribers were unwilling to maintain their subscriptions for an entire year while waiting for the next series season.

Given that the company releases full seasons of its native shows at once, users can subscribe for a month, binge-watch the entire season, and then cancel their subscriptions.

Earlier this week, Verizon Consumer Group’s chief executive, Sowmyanarayan Sampath, stated that the company’s Plus Play marketplace has been instrumental in reducing defections. The Plus Play marketplace is Verizon’s hub that centralizes content subscriptions for the firm’s customers.

According to Sampath, this approach has been a “smash hit” among customers and an excellent way for Verizon’s “content partners with churn among our customers down 60-70% compared to the average.”

Still No Official Confirmation

Verizon has offered bundle package opportunities to Netflix but never included the popular streaming platform’s $6.99 ad-supported tier, which Netflix introduced last year.

If the deal goes through, Verizon customers could essentially access all of Netflix’s content for free, assuming that they are already paying for Max’s $9.99 ad-supported tier.

So far, none of the involved companies — Verizon, Warner Bros. Discovery, and Netflix — provided an official statement, so the details remain unclear. It is unknown when the new bundled service might go live or the exact details of the arrangement, such as the revenue split between the three firms.


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