Verizon Communications will be giving all new customers in the US a free one-year subscription to Netflix if they subscribe to its FiOS triple play service.
The announcement follows Verizon’s failed partnership with Redbox to start its own streaming service, Redbox Instant. The service was launched in March 2013 but was shut down earlier this month. “The joint venture partners made this decision after careful consideration,” the pair said in a statement, adding that the service had not been as successful as either partner hoped it would be.
Verizon is now offering three triple-play packages – with monthly subscription fees of $79.99, $89.99, and $104.99, respectively – with Netflix’s streaming service provided to the subscribers regardless of which package they opt for.
The campaign marks the first time a major multichannel distributor in the US is offering direct access (and free) to an OTT video competitor. With HBO, CBS and Lionsgate announcing separate plans to launch SVoD platforms, MVPDs in this US are now seeming more willing to offer services such as Netflix, Amazon Prime Instant Video and Hulu Plus to retain subscribers.