FiOS Exec Suggests Cord-Cutting will Change the Business of Television
By Rob Scott
September 10, 2012
September 10, 2012
- Verizon FiOS views cord-cutting as a potential game-changer that could launch a new revenue stream through a la carte content.
- Cord-cutting “is not stopping. It’s growing. The question is: Is it growing enough for us?” asks Maitreyi Krishnaswamy, Verizon’s director of interactive video services, responsible for the company’s FiOS TV.
- Verizon is planning a Netflix competitor with Redbox to launch later this year. GigaOM notes that “cord cutting is fundamentally changing the parameters of Verizon’s TV business.”
- “Is the migration to a-la-carte enough that we can go that route?” says Krishnaswamy. “It impacts how we negotiate TV contracts with studios. It’s not something we can do overnight, but definitely something we’ve been looking at.”
- “Krishnaswamy didn’t spell out all the details, but here is what I read between the lines of this statement: Cord cutting isn’t just about some people not paying for TV anymore, but also about enabling new and innovative business models, including unbundled subscriptions to individual channels,” suggests Janko Roettgers, writing for GigaOM. “And Verizon is apparently ready to take the plunge as soon as the wave is big enough.”
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