Pedestrians cross Herald Sq. in entrance of a Verizon Wi-fi retailer in New York.Richard Levine | Corbis | Getty ImagesIt’s one factor for Netflix or Apple — firms that profit from shoppers shifting from cable TV to streaming — to declare an finish to conventional media consumption. It is fairly one other when it is Verizon doing the speaking.Verizon, which owns Fios, a supplier of web, landline telephone and bundled tv, introduced a suggestion this week for a few of its premium wi-fi prospects that features Disney+, Hulu and ESPN+, at no further price, and not using a promotional roll-off deadline. Subscribers to the plans additionally get Apple Music included, both for six months or indefinitely, relying on the plan.That is fairly a little bit of content material tied to an eligible wi-fi plan that begins at $45 per 30 days. The thought of bundling content material with wi-fi is not new. T-Cellular limitless information prospects can already get free entry to each Netflix and Quibi. The wi-fi provider additionally has partnered with sports activities web site The Athletic and MLB.TV to supply free one-year subscriptions. Each annual subscriptions usually price $60 every. AT&T gives HBO Max to its high wi-fi prospects without spending a dime after finishing a deal for Time Warner two years in the past.All of this “free” add-on content material has main implications for media and telecommunications firms. Most dramatically, are we seeing the formation of a brand new technique to promote media, when wi-fi and cable suppliers will strike unique offers to supply baseline packages, and shoppers can select so as to add streaming companies a la carte? And does that imply the outdated method — bloated cable bundles — is lifeless and by no means coming again?The reply, says Verizon, is sure. “The present value chain of the media enterprise isn’t working. It is damaged,” stated Frank Boulben, Verizon Shopper Group’s senior vice chairman of promoting and merchandise, in an interview with CNBC this week. “Content material has a key position to play, however very totally different from what it was after we have been extra of a standard [multichannel video programming distributor].”That is a daring assertion from a telecommunications government. It may additionally clarify why Verizon determined to not purchase a significant content material firm when Hans Vestberg took over as the corporate’s chief government about two years in the past. Verizon sees its position because the gatekeeper for buyer acquisition. It would not have to personal content material to meet this job. Furthermore, proof from its Fios web product is damning for programmers counting on affiliate charges from conventional pay TV. Greater than half of all new Fios prospects are selecting to purchase high-speed web with none video choices in any respect, Boulben stated.”We’re touching extra shoppers than another model each day,” Vestberg stated in a CNBC interview final month. “So, in fact, we will associate with Disney… we will associate with Apple on exclusives on Apple Music, and nonetheless get the identical type of our choices for patrons however with a completely totally different model.”No extra bundles… kind ofWhat you will not see Verizon do is load up on streaming companies and recreate a brand new bundle, Boulben stated. First, Verizon would want to extend the price of its packages if it did this, which is why conventional pay TV obtained into hassle within the first place. Second, Verizon selected the Disney and Apple choices for a selected motive. It felt each firms supplied significantly priceless and differentiated content material, and locked up unique offers. In different phrases, AT&T and T-Cellular can’t supply both Apple Music or the Disney bundle with their wi-fi merchandise. That is a needle mover for Verizon, and there are few others on the market prefer it, Boulben stated.Verizon has truly already taken small strides to deconstruct conventional bundles with its Fios product. Verizon gives so-called “Combine and Match” TV plans, the place shoppers can select YouTube TV and packages of 125, 300 or 425 channels, together with one choice the place after 60 days, Verizon gives you a package deal primarily based on what you watched. Every TV plan is bought individually from web and telephone, in order that prospects know what they’re paying for.The rub right here is there is a motive for bundles, and it is simply purely that they assist cut back churn. They’re additionally higher offers for shoppers. The “Triple Play” providing of TV, web and telephone has usually been a much better deal for shoppers than shopping for the merchandise individually, even when prospects did not have as a lot readability on how a lot they have been paying for every service. “I do not assume we’ll ever return to the outdated bundle method,” Boulben stated.It is possible we’ll see new bundles created exterior of the distributor ecosystem. In different phrases, as a substitute of Verizon, Comcast or Constitution giving prospects packages of linear networks, content material creators will band collectively to derive new streaming choices for a reduction.We noticed proof of this earlier this week. Apple and ViacomCBS introduced a bundle collectively, giving shoppers the choice of shopping for Apple TV+ ($4.99 per 30 days), CBS All Entry ($9.99 per 30 days) and Showtime Anytime ($10.99 per 30 days) collectively for $14.98 per 30 days after a seven-day free trial. That is a big financial savings, greater than 50%. The profit for ViacomCBS is broadening penetration of its service and constructing subscribers. That is nice for promoting income and probably wooing the Nationwide Soccer League, which can possible renew its rights offers with media companions subsequent yr.These incentives to bundle apply to all media firms trying to develop their subscribers. They’re particularly fascinating to firms that hope rising streaming video subscriber numbers are what is going to drive stock costs greater, slightly than near-term income. That is… just about each firm. The tip consequence might be newer and larger bundles that begin to look an increasing number of like cable choices.Nonetheless, these packaged offers will likely be very totally different than the way in which cable TV offers are negotiate, in backroom, non-public agreements made primarily based on the perceived value of sure networks, skewed by tying sure channels to others (like ESPN) and demanding carriage of all networks or none. As Boulben stated, there will likely be a readability across the price and value of content material that hasn’t beforehand existed.That is prone to be excellent news for shoppers, and, within the close to time period, not so excellent news for conventional media firms.As LightShed media analyst Wealthy Greenfield likes to say, #goodluckbundle.Disclosure: Comcast is the proprietor of NBCUniversal, CNBC’s dad or mum firm.Correction: This story has been up to date to mirror that 50% of Verizon’s Fios web prospects don’t join a video package deal.