Disney+ Locks in on Netflix With Pact for Millions of Verizon Customers
The streaming wars are about to heat up even that much more as each service targets carriers and partners to secure their share of your eyeball time. An announcement was made by Verizon Communications Inc. (NYSE: VZ) and Walt Disney Co. (NYSE: DIS) that the former will begin offering 12 months of Disney+ to all Verizon wireless unlimited customers and to all new and existing 4G LTE and 5G unlimited wireless customers starting on November 12.
According to the press release, new Verizon Fios Home Internet and 5G Home Internet customers can also enjoy 12 months of the Disney+ streaming service. Verizon customers will get access to commercial-free viewing, as well as up to four concurrent streams (with up to seven profiles), downloads and personalized recommendations. The service will allow for the eligible Verizon users to see everything Disney+ has on its service.
Disney’s commitment so far is to release more than 25 original series and 10 original films and documentaries during the first year alone.
While financial terms between the companies were not disclosed, the target here is obvious as has been seen in its reaction. Netflix Inc. (NASDAQ: NFLX) shares dropped 3% to $269.70 on Tuesday, on a day when the Nasdaq and S&P 500 were both higher. Investors also should keep in mind that Netflix was as high as almost $310 briefly after earnings just last week.
Verizon CEO Hans Vestberg commented:
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. 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.
Verizon’s shares were up just 0.17% at $60.85, while Disney’s shares were up nearly 2% at $132.82 on Tuesday.