What you need to know
- Verizon is allegedly preparing to offer a $10 bundle for Netflix and Max.
- The plan is reportedly in the works to reduce the churn rate on the streaming services.
- Max and Netflix are expected to have a shared revenue model with the new bundle.
Verizon wants to bring the country’s popular Netflix and Max streaming services’ ad-supported tier under a single roof with a cost-effective plan, reports The Wall Street Journal.
According to WSJ, Verizon will likely introduce a new $10 plan that will include Netflix’s ad-supported tier, which costs $6.99, and Max’s ad-supported tier, which is priced at $9.99. In total, these plans would cost $17, yet subscribers could receive a nice price reduction to $10 if the alleged Verizon plan comes into action.
WSJ further notes that by bundling their plans with major tech companies like Apple and Amazon and carriers like Verizon and Comcast, streaming companies may decrease churn and boost customer acquisition.
Customers have a habit of hopping onto streaming services to watch their favorite shows and hop off when they are done with the show, which is currently increasing the churn rate.
At the recent Paley International Council Summit, Verizon’s Consumer Group CEO Sowmyanarayan Sampath stated that bringing such bundles would reduce the churn rate by 60-70% on subscription services. Further, both streaming giants are expected to share the revenue with Verizon.
People familiar with the matter suggest that the alleged new bundle will be catered to Verizon’s “myPlan” wireless customers. The telecommunications company is believed to introduce the discounted bundle in the coming weeks, and the alleged move comes after streaming services, including Netflix, were seen hiking their plans over the past couple of years. It accounts for around a 25% increase, notes the WSJ report.
Max was an early adopter in bringing the ad-supported tier in 2021 for $9.99. Meanwhile, Netflix introduced a similar tier in 2022 for $6.99. While other premium tiers in Max and Netflix have seen a cost rise, the ad-supported tiers largely remained the same.
Verizon bringing these together should significantly increase the user base for their ad-supported tiers since the plan is much cheaper. If the move is successful, we can likely expect more collaborations to follow across the streaming giants.