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Verizon banks on Disney for SVOD credibility

US operator Verizon has done a deal with Disney to offer its new Disney+ subscription video to its customers.

Rival AT&T has gone all in on video through its acquisition of Time Warner, which enables it to offer things like HBO Max to its loyal customers. Verizon has no offsetting video assets of its own and its digital content efforts in general seem to be struggling, so it’s compelled to look for partnerships if it wants to remain competitive.

So today we have the news that Verizon is the exclusive wireless carrier partner of Disney+ and will offer all 4G and 5G customers a year’s access to all those lovely cartoons and super hero movies, which includes Fios Home Internet and 5G Home Internet subscribers. Assuming Verizon customers attach some value to Disney+, this is effectively an $84 discount on their phone bill for a year.

“Giving Verizon customers an unprecedented offer and access to Disney+ on the platform of their choice is yet another example of our commitment to provide the best premium content available through key partnerships on behalf of our customers,” said Verizon Chairman and CEO Hans Vestberg. “Our work with Disney extends beyond Disney+ as we bring the power of 5G Ultra Wideband technology to the entertainment industry through exciting initiatives with Disney Innovation Studios and in the parks.”

Vestberg may have been making a nod towards a few minor 5G announcements it had drip-fed over the past few days. You can read an excellent summary of them on Light Reading here, which is testament to the conscientiousness of its writers. Verizon also seems to be focusing its efforts on densely populated environments such as sports arenas.

While it remains highly debatable that operators will ever make significant profit from content, it does at lease serve as a good sweetener to current and prospective customers. Verizon couldn’t afford to lose too much ground to AT&T in this area after its Time Warner acquisition, so partnering with Disney makes sense. But Verizon’s negotiating position will have been weak so it has probably paid a heavy price to retain SVOD credibility.

  • Video Exchange MENA


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