Verizon to Challenge Netflix, Cable TV with Video Streaming Package
December 7, 2011 10:36 AM
Verizon's Web streaming service could be available as soon as 2012
Verizon Communications Inc. is looking to compete with the likes of Netflix and Amazon by launching a video streaming service of its own as soon as 2012.
According to two sources, who have asked to remain anonymous due to the confidentiality of the talks, Verizon is currently negotiating with potential programming partners and is looking to offer a package of programming similar to Viacom's Epix. Epix is an American premium television channel that also offers a video-on-demand service.
Verizon has been reportedly talking with programmers over the last two years regarding its potential Web service. It aims to introduce the service outside of its
current FiOS markets
, which is its broadband and TV package, and could launch the service as soon as 2012.
Verizon could potentially run into some trouble with this service, though. A streaming service would challenge the traditional TV cable system, which may be a problem if Verizon Wireless decides to resell cable TV service for Comcast, Bright House Networks and Time Warner Cable Inc. in a $3.6 billion deal.
In addition to cutting the throat of its own sister company, Verizon also faces stiff competition from already-established streaming services like Netflix, Amazon and HBO Go. Some critics have already questioned how Verizon's movie/TV package will be any different from anyone else's.
"If this deal comes true, it's not clear to me what Verizon would bring to the table that is materially different to what others like Amazon offer," said Carlos Kirjner, analyst at Bernstein Research.
To compete, Verizon will have to have a monthly fee that is at least comparable to that of Netflix or Amazon. Verizon would also have to fight to negotiate terms comparable to Netflix.
"HBO and Netflix both spend between
$1 billion and $2 billion a year on content
," said Netflix CEO Reed Hastings. "If you want to compete with HBO and Netflix, you better commit to multiple-year spending between one and two billion."
Verizon seems to be pushing forward with the streaming service, however, in an effort to increase its customer base, which is currently 5 million FiOS TV subscribers. With a larger customer base, it will be easier to lower programming costs.
The Wall Street Journal
"It's okay. The scenarios aren't that clear. But it's good looking. [Steve Jobs] does good design, and [the iPad] is absolutely a good example of that." -- Bill Gates on the Apple iPad
Netflix, Amazon Announce Content Deals with Disney-ABC Television Group
November 1, 2011, 11:19 AM
Verizon Adds More FiOS Internet, TV Subscribers Despite Sluggish Economy
October 28, 2009, 12:34 PM
Google plans ultra-fast wireless Internet for Research Triangle Park, N.C.
August 12, 2016, 6:30 AM
Twitter Senior VP: "Diversity is Important, But We Can’t Lower the Bar"
November 9, 2015, 9:59 AM
CNN Resorts to Internet Censorship to Promote Clinton Over Senator Sanders
October 15, 2015, 2:47 PM
Breaking Bad: How to Crash Google's Chrome Browser With Just 8 Characters
September 23, 2015, 11:08 AM
Quick Note: Amazon UK Offers £10 Back on Any Order £50 or Over
August 3, 2015, 12:05 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Most Popular Articles
Apple iOS Contains Secret One-handed Keyboard Code
October 22, 2016, 5:00 AM
The Unlocked Moto Z Play Launches for $449.99 Today.
October 22, 2016, 5:00 AM
The New HP Spectre: Revamped and Ready
October 23, 2016, 6:00 AM
New Way to Read Data on Ulta Hard Drives
October 23, 2016, 9:38 AM
Car Insurance - The Hidden Discriminatory Practise
October 18, 2016, 5:00 AM
Latest Blog Posts
From Time to Time, The Unbelievable and Unimaginable Happens!!!!
Oct 28, 2016, 4:56 AM
Key EpiPen Competitor Out in 2017 At ' Very Low' Cost
Oct 27, 2016, 5:30 AM
Researchers use CRISPR to Accelerate Search for HIV Cure
Oct 26, 2016, 5:00 AM
Medical Council of India Makes Generic Medicines Mandatory
Oct 25, 2016, 5:00 AM
MacBoo Pro 2016: Release date Oct. 27
Oct 24, 2016, 7:16 AM
Mac Users, Try this if Your Mac is Infected?
Oct 23, 2016, 7:00 AM
Tips to Prevent Smartphones From Overheating:
Oct 22, 2016, 5:00 AM
Nasa Flies Drones at Nevada Airport
Oct 21, 2016, 8:21 AM
T-Mobile Data Problems
Oct 20, 2016, 10:17 AM
Annoying Apple Watch Problems and How to Fix Them
Oct 20, 2016, 5:00 AM
Your Mail May Soon Be Delivered By Robot
Oct 19, 2016, 9:34 AM
2018 Jeep Wrangler Prototype Sells At Junkyard
Oct 18, 2016, 5:00 AM
Samsung Shines with Gold Edition Tablet
Oct 17, 2016, 9:24 AM
Tesla Hints Mysterious Product Debut for October 17th
Oct 16, 2016, 10:14 AM
Samsung Galaxy Note 7 Phones on US flights
Oct 15, 2016, 5:00 AM
Comcast Fined $2.3 Million For Unconfirmed Services Charged To Customers
Oct 14, 2016, 5:00 AM
“American singer / songwriter “Bob Dylan is awarded 2016 Nobel Prize in Literature.
Oct 13, 2016, 10:33 AM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information