On Tuesday, Verizon announced it would be giving away a free year of Disney+ to some of its subscribers. The firm’s new and existing unlimited wireless customers, as well as new Fios Home Internet and 5G Home Internet users, can get a year’s subscription to the new streaming service at no additional cost.
In the third quarter of 2018, Verizon reported having close to 154 million subscribers. As such, if even a fraction of the carrier’s subscribers take the deal, Disney+ will launch with millions of users. Following the wireless carrier’s announcement, Netflix’s stock price fell by 3.23 percent.
Verizon Offer Details
As noted by USA Today, Verizon has made its Disney+ offer very enticing. Participating subscribers will gain access to a full year of the streaming service’s vast library of new and legacy content. Moreover, the carrier’s promotion lets consumers create seven user-profiles and watch movies and TV shows on four concurrent streams.
Verizon’s deal also gives users the ability to download content for offline viewing.
Disney+, which launches November 12, costs $6.99 a month or $69.99 a year. At launch, the platform will feature content from Walt Disney Studios, Pixar, Marvel Studios, 20th Century Fox, and National Geographic.
Furthermore, the corporation revealed it spent more than $533 million producing original content for its subscription video-on-demand (SVOD) platform. On launch day, consumers can watch the first episodes of “High School Musical: The Series” and highly-anticipated Star Wars spin-off “The Mandalorian.”
Verizon is benefiting in two ways from its new partnership with the corporation. Besides inducing Disney fans to switch carriers, the firm will supply the entertainment conglomerate’s theme parks with 5G service.
Streaming War Escalation
Teaming up with Verizon isn’t Disney’s only recent streaming wars volley. Earlier this month, Deadline reported the House of Mouse banned all Netflix advertisements on its various networks, excluding ESPN. In addition to its branded channels, the corporation also owns ABC, FX, FXX, and Freeform.
In 2017, Disney revealed it would be pulling its “Star Wars” and Marvel Studios films from Netflix this year. Subsequently, a May 2018 Hollywood Reporter poll found 22 percent of the platform’s subscribers would cancel the service if they lost access to the Marvel movies. The survey also found 20 percent of respondents would ditch the service if they lost access to the “Star Wars” saga.
That said, Disney’s Verizon partnership may have been a move to counter the rise of Apple’s SVOD. On November 1, the Big Tech giant will launch Apple TV+ with a monthly subscription cost of $4.99. Moreover, in September, CEO Tim Cook announced purchasers of new iPhones, iPads, Macs, and Apple TVs would be gifted a free year of the service.
Earlier this month, Apple told its suppliers to increase production of the iPhone 11 to meet consumer demand. As such, Apple TV could launch with millions of subscribers because of the company’s promotion. Therefore, Disney’s decision to launch a counter initiative ahead of the debut of its SVOD is a smart move.
In 2018, T-Mobile launched a promotion called “Netflix on Us” that gave select subscribers free access to the streaming service. However, given the current landscape, the nation’s biggest SVOD might want to ask Samsung if it’s interested in a partnership.