Verizon plans to offer its customers a discounted package of streaming services that includes the ad-supported tiers of Netflix and Warner Bros. Discovery’s Max. People “familiar with the situation” told The Wall Street Journal on Thursday that the package will cost $10 per month, instead of the roughly $17 per month you would pay for the individual services .
It’s unusual for two competing streaming services to agree on a package, but there are advantages to doing so through distributors like Verizon, Comcast, Apple and Amazon. Bundles allow you to attract more customers to both streaming services and reduce the number of people who cancel their subscription when they’re done watching a particular show. Earlier this week, Sowmyanarayan Sampath, CEO of Verizon Consumer Group, said the company’s Plus Play marketplace — the hub that centralizes content subscriptions for Verizon customers — has been instrumental in reducing churn, calling it “a huge hit with customers.” and great for.” Our content partners have seen a 60-70% decrease in customer churn compared to average.”
Verizon has offered Netflix in bundle packages before, but those didn’t include the streaming service’s $6.99 ad-supported tier that launched last year. This new offer would also essentially make Netflix free for Verizon customers who are already paying for Max’s $9.99 viewing tier. It’s not clear when the new bundled service is expected to launch or what the revenue-sharing agreement will be between Netflix, Warner Bros. Discovery and Verizon. We’ve reached out to all three companies for comment and will update here if we hear back.