Verizon (NYSE: VZ) Offers its Customers Disney+ for Free

Written by Jennifer Clark
Posted October 23, 2019

Disney+, Disney’s streaming service, will launch on November 12 and heat things up in the streaming service sector — especially when it comes to providing new content for viewers. 

For years, you’ve heard how cable customers are “cutting the cord” and getting rid of their traditional cable services. Companies are scrambling to be the leader in this new sector that will only grow and become more profitable over the coming years. 

According to Statista, in 2018, subscription video-on-demand services brought in an estimated $11.3 billion — a figure that will only grow as more services become available to customers. So while people are “cutting the cord,” they will now have more options for services and finally be able to pay for what they want instead of getting a cable company's cheapest deal.  

In my opinion, having more options can be a bit overwhelming and could even cost more in the long run. Netflix, Amazon, HBO, Apple, and Hulu are some of the biggest on the market. Each has its own content, or a plan to make its own content, to give it a competitive edge. As a customer, you might end up subscribing to every service just so you can access each company’s original content. 

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Statista also reports, in 2019, only 29% of U.S. adults say they have never subscribed to a streaming service. That’s a small percentage and it will likely decrease as more services emerge and compete. Disney+ will capture a market that, thus far, hasn’t been targeted — Disney fans and fans of the content the company owns. 

Verizon Offers Disney+ to New and Existing customers

Verizon announced it will offer all of its new and existing Verizon Unlimited customers, new Fios home internet customers, and new 5G home internet customers a year of Disney+ for free. 

This partnership will give Disney+ millions of subscribers when it launches and help the service gain traction since it will be up against big competitors like Netflix, Amazon, HBO, and Apple. On Verizon’s announcement, Netflix shares fell, down 3.7% in late morning trading. Netflix is feeling the pressure and will soon lose some of its market share.

Disney+ will include new and existing TV shows and movies from Disney, Marvel, Pixar, the Star Wars franchise, and more. Content with such huge fan bases will bring in even more subscribers. The service will be available on multiple platforms including iPhone, Android, Xbox, and PS4. Disney will allow customers to download videos for offline viewing. 

This will be a big win for Disney. 

Apple plans to launch its streaming service, Apple TV+, next month as well. It will offer a free year of Apple TV+ with the purchase of new Apple products, including iPhones, iPads, or Macs. 

The video streaming race keeps getting hotter and some of the sector's leaders, like Netflix, could see their downfall in the years to come. 

Until next time, 

Jennifer Clark
Pro Trader Today
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