Verizon to Challenge Netflix, Cable TV with Video Streaming Package
December 7, 2011 10:36 AM
comment(s) - last by
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
This article is over a month old, voting and posting comments is disabled
12/7/2011 1:07:31 PM
Too many service provides are just going to bid up the price of content for everybody.
Apple kept iTunes prices down because they were the only game in town. Consumers wanted iTunes and that gave Apple leverage to negotiate lower costs for content.
Look at Netflix. The movie industry sees the dollar signs in streaming and now have other options to deliver it. Ironically the growth and competition has led to higher prices.
"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer
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
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
Mozilla and Facebook to Adobe: It's Time to Kill Flash
July 20, 2015, 6:30 PM
Most Popular Articles
Free Windows 10 offer ends July 29th, 2016: 10 Reasons to Upgrade Immediately
July 22, 2016, 9:19 PM
Smart Security Cameras: 5 Good Choices For Any Budget
July 25, 2016, 7:13 PM
2017 Porsche Panamera: I’ll Take Three of These.
July 24, 2016, 6:44 PM
Top 5 Smart Watches
July 21, 2016, 11:48 PM
5 Excellent Cable Modems: Buy Your Own and Avoid Rental Fees
July 28, 2016, 8:44 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information