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Verizon Looks To Combat Cord Cutting by Dropping Traditional Packages

Verizon recently announced that they are separating traditional cable bundles in an effort to combat the popular cord-cutting trend. Millions of Americans have been ditching the traditional cable packages in favor of more affordable streaming packages that allow them to better customize the content that they want. Verizon hopes that by making it easier for their customers to switch video packages, more will forego cutting the cord entirely and stick with the telecommunication giant’s offerings.

According to Verizon’s announcement, they will allow their Fios customers to select their home internet and television packages separately, as opposed to forcing those customers to lock into a multiple-year contract. As a result, customers could change their packages as frequently as once a month, without any early termination fees.

Verizon is calling this new pricing model “Mix & Match”. Mix & Match includes three tiers of internet speeds that range from $40 to $80 per month. TV packages range from $50 to $90. The cheapest TV plan includes 125 channels.

Frank Boulben, Verizon’s senior vice president of consumer products and marketing released a statement about these changes. “Customers are tired of having to buy a bundle with services they don’t want to get the best rates, and then discover that those rates didn’t include extra fees and surcharges,” said Boulben.

Verizon is a relatively small player in the pay-TV world, particularly when compared with giants like Comcast. However, this change makes it clear that Verizon values those customers and plans on growing that particular service offering. It’s not unreasonable to assume that bigger pay-TV companies will likely follow a similar model to combat the cord-cutting trend that seems to becoming more prevalent throughout the United States.

Jonathan Schwantes, senior policy counsel for Consumer Reports released a statement praising the changes made by Verizon. “Finally, a major cable company has gotten the message,” said Schwantes. “Consumers are fed up with paying hundreds of dollars in extra fees each year that weren’t always clearly disclosed when they signed up for service.”

Sources:
https://www.inquirer.com/business/verizon-fios-cable-tv-hidden-fees-comcast-broadband-20200110.html

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