Verizon makes statement with new Disney deal: The pay-TV bundle is dying and isn't coming back

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A Verizon executive told CNBC 'the current value chain of the media business is not working. It's broken,' as the wireless company makes new deal to provide Disney+, Hulu and ESPN+ to some wireless customers for no additional charge.

No more bundles... sort of

What you won't see Verizon do is load up on streaming services and recreate a new bundle, Boulben said. First, Verizon would need to increase the price of its wireless or 5G Home packages if it did this, which is why traditional pay TV got into trouble in the first place. Baseline prices become too high. Second, Verizon chose the Disney and Apple offerings for a specific reason. It felt both companies offered particularly valuable and differentiated content, and locked up exclusive deals.

Verizon has actually already taken small strides to deconstruct traditional bundles even with its Fios product. Verizon offers so-called, where consumers can choose YouTube TV and packages of 125, 300 or 425 channels, including one option where after 60 days, Verizon offers you a package based on what you watched. Each TV plan is sold separately from internet and phone, so that customers know what they're paying for.

The rub here is there's a reason for bundles, and it's just purely that they help reduce churn. They're also better deals for consumers. The "Triple Play" offering of TV, internet and phone has typically been a far better deal for consumers than buying the products separately, even if customers didn't have as much clarity on how much they were paying for each service.

It's likely we'll see new bundles created outside of the distributor ecosystem. In other words, instead of Verizon,

 

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Maybe if verizonfios Verizon gave normal prices people wouldnt get rid of tv bundles. Im the next one debating getting rid of tv package.

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