The real potential here could be longer term, though. “Because what we bring in exchange, it's an acquisition machine, and also a marketing machine for the lifecycle management of customers.”Īs Boulben rather slyly mentioned, having a sense of getting value for money “is not the case, as you know, with all marketplaces currently in the market.” “What I can tell you, on the basis of our existing relationships, it is perceived as fair by the providers,” Boulben said. For Verizon, the revenue share will vary from deal to deal, category to category. The subscription service also gets its customer’s log-in and email address, so it can do direct marketing to its customers.īoulben declined to specify Verizon’s revenue share (estimates of Amazon’s Channels suggest it brings in a whopping $4 billion a year). Verizon has the biggest customer base of the Big Three wireless carriers, some 50 million households with 150 million individual customers, an enticing target for any DTC company, in video or elsewhere.Īsked how Verizon can avoid a replay of HBO Max’s Amazon walk away, Boulben said “we have the commercial relationship,” but the streaming service has “100-percent ownership of the usage data.’ The streaming service is “the only party knowing whether you are using the service on the daily basis, how much you are using it, and what you are watching.
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Amazon has its Channels program, as well, but unlike Paket, isn’t exactly Switzerland, given its own streaming services and tight control over customer data.īecause of that, HBO Max last summer walked away from 5 million subscribers on Amazon, a gutsy call that paid off in Q4 with strong subscriber growth that suggests most of those customers followed it to a more direct relationship.īut owning all the data and relationship can be hard for many companies, especially as customers add more and more subscriptions in the direct-to-consumer era.īoulben argues that Verizon’s Plus Play partners are willing to trade some of the customer relationship in exchange for Verizon’s huge reach, existing sales/upsell teams, and lower acquisition and retention costs. Startups such as Paket have created go-to apps that bring together in one place all the sign-ons, billing and other customer minutia that streaming video customers need for all their video services. It allows our partners to focus really on the product experience or the content experience.”
And obviously, we are very good at managing the lifecycle of customers. “In particular, we have a very high conversion rate from promotion to paid subscribers, which is a business challenge for them. “Those partners have realized that we are very good at acquiring active subscribers,” Boulben said. Marketing hype aside, Boulben can point to previous successes pushing Apple Music, then Disney Plus, Discovery Plus and the Apple Arcade and Google Play Pass video game services as add-ons or premiums for wireless service. It's to be that neutral market place that provides convenience and choice for consumers on one side, and on the other side provides unparalleled reach and marketing ability for the service provider.” “And that's really the gist of the Plus Play strategy. If you prefer streaming your latest binge-watching obsession but also like to check out what’s airing on the broadcast networks, this plan strikes the perfect balance.“We have a lot of service providers, starting with the (video) programmers, that are reaching out to us as they are looking for an efficient direct-to-consumer distribution platform, because most digital service providers haven't got the marketing or distribution clout to reach a large customer base,” Boulben said.
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We like that it offers download speeds of 200 Mbps to up to 940 Mbps and channel counts of 125+ to a whopping 425+. Verizon’s Mix & Match TV and internet plans are great for budgeters, sports lovers, and video streamers.
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