(Bloomberg) -- Verizon Communications Inc. said its Fios video and internet service would abandon the cable-industry tradition of locking customers into long-term bundled packages, the latest effort to contend with the rise of cord cutting.
The new model, called Mix & Match, lets consumers choose among a variety of video-channel packages and internet-router speeds without signing an annual contract. Verizon also plans to roll various fees and surcharges into the base price of its packages, to clarify what subscribers are really paying.
“Customers are tired of having to buy a bundle with services they don't want to get the best rates,” Frank Boulben, Verizon's senior vice president of consumer marketing and products, said in a statement.
Cable providers are struggling to adapt to consumers' increasing desire for so-called over-the-top streaming services such as Netflix Inc. instead of old-fashioned linear television. Verizon in October reported a third-quarter net gain of 30,000 Fios internet customers -- and a loss of 67,000 Fios video customers.
Verizon shares were up 0.2% in New York trading Thursday. The stock was up 9.2% last year, trailing behind the 29% rise of the S&P 500 index.
To contact the reporter on this story: John J. Edwards III in Boston at jedwardsiii1@bloomberg.net
To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, Cécile Daurat
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