Verizon FiOS Bows Cord-Cutter Plan With Netflix, HBO, Showtime19 Nov, 2014 By: Erik Gruenwedel
In the rush to lure cord-cutters, cord-nevers and millennials, Verizon Communications has rolled out a streamlined subscription plan that includes high-speed Internet, local FiOS TV, HBO, Showtime and a free year of Netflix for $59.99 a month.
With the average monthly cable TV bill projected to top $123 in 2015, according to The NPD Group, Verizon’s limited-time offer costs less than half — based on a two-year contract. Features include FiOS TV local access includes CBS, ABC, NBC, PBS, Fox, The CW Telemundo and Univision, in addition to 50 Mbps Internet speed, HBO, Showtime and one year of Netflix.
Verizon had been teasing new FiOS triple-play customers (TV, Internet and phone) in New York with a free year of Netflix included in their subscriptions.
"We think this package looks extremely competitive and appears designed to re-capture cord cutters," Tim Horan, analyst with Oppenheimer, wrote in a note. "This could have a material impact to net [FiOS subscriber] adds in [the fourth quarter].”
Verizon’s mini-bundle offering comes as Sony prepares to launch an Internet TV service dubbed PlayStation Vue — reportedly priced from $60 to $70 dollars a month.
Dish Network is slated to launch over-the-top video services in the fourth quarter, and CBS just bowed “CBS All Access” subscription streaming service for $5.99 a month.
AT&T and Comcast have been test-marketing separate streamlined OTT plans priced around $40 a month, with the former including access to Amazon Prime Instant Video.
HBO and Showtime are also planning separate OTT service launches in 2015.
"AT&T and Verizon continue to use price and gift card offers to attract new customers with the reaction from cable and satellite largely muted," Nomura Securities senior analyst Adam Ilkowitz wrote in a note.