Verizon will offer ad-supported versions of Netflix and Warner Bros. Discovery’s Max as part of a discounted price of $10 per month, new reports suggest.
Viewers can normally expect to pay $17 per month for both services separately, but the latest discounted bundle will be announced in the coming weeks.
The future deal was revealed to the Wall Street Journal through a source familiar with the matter.
Netflix and Warner Bros share revenue with Verizon.
It’s the latest sign that streaming services are under pressure to comply, following a series of price hikes that have made them increasingly less affordable.
Verizon to offer ad-supported versions of Netflix and Warner Bros. Discovery’s Max as part of a discounted price of $10 per month, new reports suggest
Apple TV recently raised its prices by 40 percent to $9.99 per month, while Netflix announced in October that it would increase the price of its most expensive streaming tier by $2 to $23 per month. It meant an increase of 10 percent.
Meanwhile, the price of an ad-free Disney+ subscription rose to $13.99, while an ad-free Hulu subscription now costs $17.99, a 27 percent increase.
According to the WJAccording to the analysis, the costs of major ad-free streaming platforms have increased by about 25 percent.
Streaming platforms are racking up billions of dollars worth of losses, largely caused by offering rock-bottom prices up front to attract new customers in a competitive market.
But pressure from investors to raise more money is increasing. They’re counting on customers to gobble up higher prices – or risk losing them altogether.
Analysis from personal finance app Rocket Money recently found that cancellations have surpassed new subscriptions for the most popular digital memberships.
The potential deal was disclosed to the Wall Street Journal through a source familiar with the matter
The era of cheap streaming appears to be over, as numerous services have increased their prices this year
Cancellations for Netflix, Hulu and HBO Max are up 49 percent in 2022 compared to the previous year, according to subscriber tracking antenna.
It has led to an increase in the number of services offering cheap, ad-supported content.
Netflix launched its ad-supported tier late last year. It costs about $6.99 per month and would account for about 30 percent of new U.S. customer signups, according to Antenna figures.
This isn’t the first time Verizon has previously offered Netflix in its bundles, but it is the first time it has offered the ad-supported tier of the service.
And last year there was a promotion where consumers could get Netflix for free for a year if they subscribed to another service.
Verizon has offered Netflix in bundles before, but this is the first time it has offered the ad-supported tier of the streaming service.
Netflix declined to comment to Reuters, while Verizon did not immediately respond to requests. DailyMail.com has contacted all three companies for comment.