Verizon to offer Netflix to its users for free

Netflix, which has been the largest provider of on demand Internet streaming media whether it is movies or any TV shows, is reporting worse than expected earnings in recent times. Hence, Verizon is planning to add Netflix’s streaming services along with their pay TV packages. It is believed that both of the companies are still a potential threat to the traditional pay TV model. Recently, Verizon has added Netflix in its streaming based list and has signed a deal with Netflix. The deal is believed to be limited as it will expire on November 1. 

The geographical location to first introduce this service is New York City area. Fool.com believes that “the deal points toward a testing phase in which Verizon's management weighs demand before deciding on a nationwide rollout. In addition to a year of Netflix, you get a free $150 Visa gift card, 75/75 Internet, and 195 HD channels for $79.99 per month.”

The analysts believe that this particular deal requires a two year contract but as Netflix results perceive at the moment, it is expected that Netflix will only be good for the first year. This deal is said to be a competitor of AT&T which signed Amazon a while ago. AT&T published that “AT&T offers its new $39-per-month U-verse bundle with Amazon Prime and HBO. And while AT&T's service appears cheaper, it appears not to offer as many channels (roughly 90, versus the 195 HD that Verizon boasts of) and a data cap of 250 GB per month (additional data is $50 per 10GB).” AT&T believes that Verizon along with Netflix is nowhere near the company’s deal with Amazon. 

Analysts expect that the good days might come again for both Netflix and Amazon after signing contracts with Verizon and AT&T respectively. However, in the longer run, Netflix will prove to be more advantageous for itself, VZ, and the users because of its features and credibility.

In a nutshell, after announcing that Verizon and AT&T will offer Netflix and Amazon Prime for free, it has positioned the future of cable television in serious jeopardy.