Verizon is the latest company to release a bundle of streaming services. Yesterday (Dec. 7) the wireless carrier announced a $10 (per line per month) bundle that includes ad-supported tiers of Netflix (NFLX) and Warner Bros. Discovery (WBD)’s Max. The deal is part of Verizon’s myPlan package, which offers a variety of customizable subscription services.
“…myPlan is resonating with our customers,” Verizon CEO Hans Vestberg said at the UBS Global Media & Communications Conference in New York City on Dec. 4. “We have seen a very high degree of our customers selecting the premium network but also now that the perks are still growing.”
Vestberg stressed that Netflix and Max, two of the most popular streaming services in the market, “never have been bundled before for that price,” and that he hopes it will result in customer retention. Netflix starts at $7 a month and Max starts at $10.
According to Vestberg, Verizon has found success in offering additional benefits whenever customers purchase more products. The strategy leads to lower “churn,” a term that describes the rates at which a company loses subscribers.
“In all studies, we have an enormous database of consumers. The more assets you have with us, the more devices you have, the more perks you have, the lower the churn is,” Vestberg said.
One of the other myPlan packages that Vestberg boasted at the UBS conference is one that combines five streaming services: the ad-free Disney+ and the ad-supported tiers of Hulu, ESPN+, Netflix and Max—all for just $20 a month.
Other companies have started teaming up on similar bundle plans and advertising the savings to their customers. Last week (Dec. 1), Apple (AAPL) and Paramount (PARA) Global discussed selling a subscription package that would include Apple TV+ and Paramount+ at a discounted rate. The Walt Disney Company (DIS) also launched a one-platform experience this week that combines Disney+ and Hulu. These bundles are being introduced at a time when major streamers, including Apple+, Paramount+ and Disney+, have hiked prices for their individual plans recently.