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Verizon Gangs Up with Netflix and HBO to Beat Down Competitors
by Maverick Steffen on 12/5/2023
Starting December 7 and for the first time, ad-supported services from entertainment giants Netflix and Max will be offered together as a part of Verizon's Platform for just $10 per month, providing their customers with over 40% savings that they can't get anywhere else.
Verizon's partnership with Netflix and HBO Max is a quintessential example of my system of of marketing called Battlenomics.
While Verizon provides internet services and Netflix and HBO Max offer entertainment content, they share a common benefit: entertainment delivery. Their products are different but complementary, making them parallel competitors.
By bundling these services, Verizon capitalizes on the synergy between internet provision and content consumption.
Customers seeking high-speed internet for streaming are more likely to be attracted to a package that includes premium content providers.
The alliance allows Verizon to offer more value to its customers, potentially increasing customer loyalty and attracting new subscribers. For Netflix and HBO Max, it's an opportunity to expand their audience base, especially in the competitive ad-supported streaming space.
This move could also be seen as a response to the evolving market dynamics where telecom and content providers are increasingly blending their offerings to enhance customer experience.
Verizon's strategy can be viewed as an investment in customer acquisition and retention, a critical aspect in the highly competitive telecom sector.
The discounted rate at which these services are offered (40% less than their combined individual subscriptions) can be a major draw for consumers, enhancing Verizon's market positioning against competitors.
Businesses in different sectors can learn from this strategy by identifying potential partners who offer complementary benefits to their products. The key is in finding the right synergy that adds value to the customer's experience. For instance, a fitness app could partner with a health food service, both targeting health-conscious consumers, but offering different aspects of a healthy lifestyle.
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