Verizon accelerates its own cable death with a free Disney streaming bundle
Way harsh, Tai... Verizon just trolled itself by saying cable bundles no longer make sense. But it came ready with a self-improvement strategy: a sweet Mickey deal. Verizon is offering the entire Disney streaming bundle (aka Hulu, Disney+ and ESPN+) for free to some premium wireless customers.
- Old Bundle: Telecom companies are known for "Triple Play" bundles of cable TV, internet, and phone service.
- New Bundle: Internet, wireless service, and the Disney streaming bundle + Apple Music thrown in at no additional cost. And no expiration date.
Just wanted to stream Hamilton... Verizon's cable biz is dying because streamers like Disney+ and Netflix are thriving. The cord-cutting frenzy wasn't lost on Verizon, so it decided to disrupt its own cable business:
- Over 50% of new Verizon Fios households choose not to add cable TV to their home broadband internet package. That unbundling spells doom for pay TV.
- “The current value chain of the media business is not working. It’s broken.” Verizon exec quote, spittin' facts.
Not all bundles are created equal... but they're all meant to reduce churn. You're less likely to cut your relationship with a company if it's offering you 5 services at bundle price (even if you only care about 3). But cable has clearly lost its sex appeal, while streaming is at peak hotness. Verizon isn't the only telecom splurging to offer streaming for free: T-Mobile gives away Netflix and Quibi and AT&T ships HBO Max. It's customer retention strategy, binge-edition.