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Verizon is now bundling one year of free Netflix with its FiOS Triple Play package, according to Engadget.

The FiOS Triple Play package includes internet, TV, and its landline phone service, and costs $80 per month. The free yearlong offering could incentivize existing Triple Play customers to stay with the company, while attracting more Verizon customers to the package.

Verizon isn't the only US telecom to leverage a streaming service for a promotional offering. T-Mobile in September began offering free Netflix subscriptions for T-Mobile One customers with two or more voice lines. AT&T offers some of its subscribers free subscriptions to HBO, and its DirecTV Now app gives users free access to a range of video content.

Sprint offers free access to Tidal’s streaming platform HiFi and announced plans in November to offer free Hulu subscriptions for customers on its unlimited plans. Although Verizon isn’t bundling Netflix with mobile phone plans, like its rivals, offering a free subscription to Netflix with its Triple Play package plays into this trend. And unlike its rivals, Verizon’s Netflix subscription offering caps out at one year, while most others are offered in perpetuity.

Although Verizon isn’t the only US telecom to offer a free Netflix subscription, it’s the first to bundle a Netflix subscription with cable TV. Verizon FiOS customers on the Premium service will have the ability to stream Netflix directly to their TV by simply turning to channel 838. 

While Verizon doesn’t currently have an offering covering the cost of a video subscription for its mobile phone subscribers, it does have the Go90 video-streaming app and it zero-rates the data used to view content within the app for subscribers. And Verizon CEO Lowell McAdam confirmed in May 2017 that the company plans to roll out an over-the-top (OTT) streaming service, according to TechCrunch. 

However, it's unlikely Verizon will win over new customers with its free Netflix offering.Free content doesn't incentivize consumers to switch mobile carriers, according to BI Intelligence’s exclusive Digital Telecom Consumer survey. Almost all survey respondents said that free content is not a must-have offering from their mobile carrier, and 88% said they don't consider it important at all.

It hasn't been smooth sailing for telecoms in recent years. Native voice and messaging services, which once accounted for the vast majority of telecoms' subscriber revenue, are struggling to compete with over-the-top (OTT) apps, like Facebook Messenger, WhatsApp, and Viber — and they're losing.

Laurie Beaver, research associate for BI Intelligence, Business Insider's premium research service, has written a detailed report on the mobile carrier landscape that:

  • Describes how the US wireless carrier is shaping up.
  • Explores the effect of the fierce pricing wars taking place, and the methods carriers are using to retain their subscribers.
  • Highlights the new technology carriers are using to drive growth and revenue. 
  • Looks at the potential barriers that could limit carriers' growth and examines who's best positioned to come out on top.

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