Will Verizon Take on Netflix and Others with its own Streaming Video Service?

By Rob Scott
December 7, 2011

Verizon is planning to launch a standalone video streaming service for 2012 that would offer movies and TV shows via the Web, according to several people close to the plan.
“The phone company is talking with prospective programming partners about the service, which would be introduced outside of markets where it currently offers its broadband and TV package, known as FiOS, these people said,” reports Reuters. “That would make it available to some 85 million U.S. households.”
Verizon may be concerned about cord cutters and competition from Netflix, Amazon and Google.
“Verizon has been back and forth with programmers over the last two years exploring the possibility,” suggests the article. “While a lot of the discussion has been around fees, the programmers have also been concerned about the possibility of hurting their existing — and lucrative — relationships with the cable operators.”
Having its own streaming service would allow Verizon to grow its customer base and thereby lower its programming costs.
“News of the service will have added controversy in the wake of sister company Verizon Wireless’s plans to resell cable TV service for Comcast Corp, Time Warner Cable Inc and Bright House Networks,” points out Reuters. “Under that deal, announced last week, Verizon Wireless will pay $3.6 billion for valuable spectrum from the cable companies.”

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