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Past reports indicate that Verizon may be aiming for eventual pay-per-play sales scheme

When Time Warner Cable Inc. (TWC), Comcast Corp. (CMCSA) agreed to sell America's top mobile carrier Verizon Wireless -- a joint venture between Verizon Communications Inc. (VZ) and Vodafone Group Plc. (LON:VOD) $3.9B USD of AWS ("advanced wireless services") spectrum, most assumed the deal was relatively straightforward for spectrum-hungry Verizon, who's currently in the middle of an LTE (4G) deployment push.

However, it appears the deal is a little bit more complex.  As part of the deal, The Wall Street Journal is reporting that the cable networks will partner with Verizon to resell its planned integrated video service, which will take on Google Inc.'s (GOOG) industry-leading video sharing site, YouTube.

Verizon CEO Lowell McAdam told the WSJ, "Technically, I think we could have something out that would be the beginnings of an integrated offering in time for the holidays."

Verizon says it plans to distribute the video both through the tentative joint venture with cable firms, to its mobile device subscribers, and to Verizon Communications' growing number of fiber-optic service (FiOS) customers.

Leaked Documents from a 2010 public webinar presented by top wireless service providers Allot Communications and Openet, indicate that carriers like Verizon (Verizon Wireless's parent Vodafone was shown in the slide) may hope to lure customers into an arrangement in which they are charged individual fees for each video view (the proposed rate for YouTube videos was $0.50).  However, Verizon might be willing to allow its subscribers to get their views at a discount -- or even for free -- as a means of forcing users away from YouTube and adding to its advertising/subscriber revenue.

(Update: A brief statement by Openet was retracted on request of Openet, hence the article shuffling.)

Source: WSJ

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How long...
By batjohn on 3/30/2012 12:30:04 PM , Rating: 4
How long till they announce that using their service won't count towards your data limit? Just a hypothetical but I could see it happening to steer people to their service over google.

RE: How long...
By tayb on 3/30/2012 6:06:14 PM , Rating: 3
Can't give preferential treatment to your own service. If they tried something like this they would get a royal smack down in court.

It wouldn't surprise me if Congress tried to pass a law to allow this though. Bunch of corrupt scumbags.

RE: How long...
By RufusM on 3/30/2012 8:28:25 PM , Rating: 3
Comcast has announced that their streaming service for xbox won't count against their monthly cap so this kind of crap is already starting.

Their argument is that it travels over their private network and not the Internet.

RE: How long...
By TSS on 3/30/2012 6:50:01 PM , Rating: 3
They can try, but fortunatly google is also a huge company with a big enough war chest to fight that out in the courts.

Here they will have to compete on an even field. And somehow i don't see them winning out there as long as youtube exists and is free.

People might use them concurrently if they offer premium content delivered with a youtube ease. But still, youtube remains the place to go for videos. It's impossible to beat free.

RE: How long...
By gorehound on 4/1/2012 9:33:30 AM , Rating: 3
Sticking with youtube.
I will not go with Verizon/ATT/BIG ASSHOLE TELCO starting new Video Website.
Youtube works for the whole World.I will not feed the greed of Telcos.

What are they thinking
By Reclaimer77 on 3/30/2012 1:18:43 PM , Rating: 2
Just...what are they thinking? Surely they know how entrenched YouTube is at this point. Maybe 5 years ago something like this would actually work, but today? Impossible.

RE: What are they thinking
By IcePickFreak on 3/30/2012 1:40:06 PM , Rating: 2
You just nevermind. Someone at Verizon is making boatloads of money to come up with innovative ideas like this. (And by innovative, I mean copying somebody elses idea.)

RE: What are they thinking
By kattanna on 4/4/2012 11:19:34 AM , Rating: 2
Just...what are they thinking?

I think we would need a whole lot of blow and champagne to "understand" that

alittle late aren't we?
By Makaveli on 3/30/2012 1:56:47 PM , Rating: 2
They guys are 5-6 years too late.

And the moment youtube starts to charge per view is the moment I stop using it.

Why do they think anyone will drop a free service to use their own?

And I agree with the other poster why don't they try to innovate something new instead of just copying an idea.

RE: alittle late aren't we?
By bupkus on 3/30/2012 6:02:30 PM , Rating: 2
And I agree with the other poster why don't they try to innovate something new instead of just copying an idea.
They are. They're gonna charge for it. I mean, duh! :p

RE: alittle late aren't we?
By sigmatau on 3/31/2012 7:21:15 PM , Rating: 2
When youtube starts streaming like any other video I view without the crazy slow buffering is when I will start using it again.

In Comcast/Verizon's dreams...
By Azaraith on 3/30/2012 4:08:47 PM , Rating: 2
Who are they kidding? $0.50 per video? And they think that making it free to FIOS customers would drive people to it rather than YouTube? Which is free anyway? Or are they saying they'd charge their customers $0.50 for YouTube? In which case, goodbye FIOS, hello AT&T U-Verse (or whatever other competing service I can get).

RE: In Comcast/Verizon's dreams...
By bupkus on 3/30/2012 6:10:23 PM , Rating: 2
Maybe they're gonna allow ameture porn........

Yah, dream on.

RE: In Comcast/Verizon's dreams...
By FaaR on 4/4/2012 12:06:45 PM , Rating: 2
What, armature porn? I didn't know people could have a fetish for the rotor of an electric motor...

Unholy Union
By phantom505 on 3/30/2012 2:38:32 PM , Rating: 3
Just in case you wanted to know what the child of Hilter and Satan looked like.... it looks awfully similar to a Verizon/Comcast mating.

Talk about companies that should never copulate, it's them.

RE: Unholy Union
By phazers on 3/30/2012 6:35:21 PM , Rating: 2
Agreed. The more Verizon and Comcrash cooperate, the less likely I'll be able to 'ping-pong' between the two of them for the lowest rates on TV & Internet..

Having been a customer of both, I think they already share their customer 'service' depts, since both behave identically - most interested in extracting as much cash outta yer wallet as possible :P.

growing number of FiOS customers?
By Azethoth on 3/30/2012 12:52:31 PM , Rating: 2
Verizon canned the FIOS roll out last I heard and the only growth is in existing areas. It is as if they think wireless is going to solve broadband delivery but this totally ignores the impending bandwidth crunch.

Unlike wired bandwidth wireless has a hard physics limit on its capacity.

"Folks that want porn can buy an Android phone." -- Steve Jobs

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