Verizon plans to offer ad-supported versions of Netflix’s Max and Warner Bros. Discovery’s streaming services for about $10 a month combined instead of about $17, depending on pricing. The Wall Street Journal reported Thursday.
The discounted package is expected to be announced in the coming weeks, according to the report, citing people familiar with the situation.
The move is the latest sign that the highly competitive streaming space is prompting companies to try new bundling tactics in their partnerships with telecom providers to attract customers.
Netflix and Warner Bros. will have to share revenue with Verizon, according to the report, adding that although the financial agreement could not be known, there is a minimum guarantee of revenue for the entertainment companies.
Verizon and Warner Bros Discovery did not immediately respond to Reuters requests for comment. Netflix declined to comment.
Netflix launched its ad-supported tier late last year and raised prices for its ad-free premium tier in October.
