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Introduction

Verizon in April 2015 launched its double- and triple-play bundles, including Custom TV, a new configuration of its basic TV service coupled with cheaper channel packs with fewer channels.

Highlights

  • This is an important pricing innovation for Verizon, which is facing slowing growth of its wireline customer base. It was designed to appeal to customers who would otherwise churn or subscribe only to OTT players like Netflix.
  • The pricing initiative was also designed to help Verizon control its content acquisition costs.
  • A year later, the results show that Verizon may have sacrificed wireline revenue growth, but profit margins are up for Custom TV customers.

Features and Benefits

  • Describes a pay-TV pricing initiative from Verizon – the launch of cheaper TV packages with a smaller range of content.
  • Provides an assessment of the impact of the new pricing initiative.

Key questions answered

  • What pay-TV pricing initiative did Verizon launch in 2015?
  • What was the impact of this initiative?

Table of contents

Summary

  • In brief
  • Ovum view

Recommendations

  • Recommendations for service providers

Evaluation

  • Business model and commercial strategy
  • Outcome assessment
  • Industry lessons learned

Appendix

  • Methodology
  • Further reading
  • Author

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