November 21, 2014
Last month, we reported that Verizon and Netflix were quietly testing a bundled subscription plan with FiOS Triple Play customers in New York City. The move seemed somewhat surprising, when considering the recent public feud between the two companies regarding connection speeds. Now, in an effort to recapture cord cutters, Verizon is offering a $60 per month plan that includes Netflix, broadband speeds of up to 50Mbps, local TV channels, HBO and Showtime (and when they arrive next year, HBO Go and Showtime Anytime).
“Cord cutter culture is clearly on the rise, especially among the younger generation,” suggests Digital Trends. “Verizon added 21,000 fewer FiOS pay TV subscribers in the third quarter of this year than in Q3 2013. Naturally, the hope is that this jam-packed package will entice customers to return. It offers the best of both worlds — access to the current series of popular shows on networks like HBO and Showtime (catch your weekly fix of ‘Game of Thrones,’ anyone?), plus full library content of past seasons via Netflix.”
“We think this package looks extremely competitive and appears designed to recapture cord cutters,” said Oppenheimer analyst Tim Horan (as reported by Investors.com). “This could have a material impact to net adds in Q4 and is slightly negative for Comcast.”
“Competitors like Comcast, Cox, and AT&T, have all offered similar promotions that include a monthly service plan plus an OTT service, like Amazon Prime in the case of AT&T, ranging from $40-$50/month,” notes DT. “Add in the forthcoming premium channel app of choice, and you’ve got a fairly enticing a la carte streaming meal. But will it work?”
Meanwhile, HBO and CBS have already announced their decisions to offer standalone online services without the need for cable or satellite subscriptions.
Trial: Verizon FiOS and Netflix Test Bundled Subscription Plan, ETCentric, 10/30/14