When two companies are competing for the same customers, usually they don't start cooperating to help each other out, right? I wouldn't expect McDonalds to start selling Whoppers anytime soon. That's what makes a recent partnership between Verizon and Netflix so unlikely. Verizon is a cable provider, among other things, and Netflix is one of the top cord-cutting services hurting its business.
Verizon (NYSE: VZ) is taking a different approach, though, adding Netflix (NASDAQ: NFLX) - the primary culprit in cord-cutting - to select triple-play bundles. Verizon will offer new FiOS subscribers a free year of Netflix with a two-year agreement.
The bundle was only offered on a trial basis in New York recently to gauge customer interest. But, if it turns out to be popular, Verizon could expand it later on to more areas.
That could make for an interesting long-term partnership between rivals. It could also be good news for people who like Netflix but aren't quite ready to cut the cord for good.