Verizon customers will be able to pay just $10 a month for access to both Netflix and Max through a new bundle package available beginning this week — a move industry experts say could see streamers start to favor partnerships over competition.
Streaming subscriptions to Netflix and Warner Bros Discovery-owned Max (formerly HBO Max) will be offered as a bundle to Verizon myPlan customers starting Tuesday, one of the first times Netflix has ever offered a bulk discount for its services.
The $10 price is a significant discount for the two ad-supported plans, which sell for $6.99 and $9.99 on Netflix and Max, respectively.
Verizon also offers a $10-per-month Disney+, Hulu, and ESPN+ plan add-on, meaning customers could now get access to five major streaming services for $20 per month.
How revenues will be shared among Verizon, Netflix and Warner Bros has not been revealed.
The Netflix and Max announcement comes amid ongoing bundling talks between the Apple TV+ and Paramount+ services, CNBC reported , a sign that legacy media companies may be warming up to the idea of partnerships with competitors and discounts to get new viewers.
Few streaming bundle options exist now and those that do tend to package together services owned by the same company—Disney, for example, offers a deal that bundles Hulu + Live TV, Disney+ and ESPN for $76.99 per month with ads or $89.99 without.
Amazon Prime Video and Hulu allow users to subscribe to Max, Cinemax, MGM+, Starz, AMC+, PBS, Hallmark, Cinemax and other competing services for an additional fee.
The popularity of streaming services skyrocketed at the start of the Covid-19 pandemic as the number of worldwide subscriptions hit 1.1 billion in 2020, the Motion Picture Association said. Roughly 87% of all U.S. households are subscribed to one or more streaming services, Kantar reported, and the average American spends $48 per month on video streaming services, according to Deloitte’s 2023 Media Trends Survey. The most popular services are Netflix, Prime Video, Disney+, Max and Paramount+, according to USA Today. Streamers have increasingly turned to ad-supported tiers to drive up revenue from advertisers, the Wall Street Journal reported, and bundling services together remains an attractive option for those tiers. Warner Bros. Discovery CEO David Zaslav in September said he is a “big advocate for bundling” to lower the rate of cancellations and improve user experience.
25%. That’s how much the cost of major ad-free streaming platforms have risen over the past year, according to the Wall Street Journal.
Other services have popped up to make it easier for customers to cut the cable cord—Philo‘s basic package offers access to A&E, BBC America, AMC, OWN and Hallmark content starting at $25 per month, with additional add-ons like Starz and MGM+ also available. Fubo TV has cashed in on the world of sports—its plans offer hundreds of TV channels and allows add-ons of NFL RedZone for an extra $11 per month, NBA League Pass for $15 and Starz for $10.