Verizon Preparing To Launch A Netflix Competitor
Verizon Communications Inc. (NYSE:VZ) is planning on launching a video streaming service for movies and TV shows on the web to take on Netflix. Verizon is currently talking to programming partners. Verizon is targeting customers that are outside of markets where they currently offer FiOS. The new service is expected to be launched in 2012.
Sources believe that Verizon’s video offerings would be similar to what Liberty Media’s Starz Play and Viacom’s Epix offers. It may also involve children’s programming from partners like Disney or Viacom.
Verizon has been talking with TV programming companies over the last 2 years. A lot of the discussion has been around what types of fees would be associated with the services. Verizon’s FiOS has 5 million TV subscribers. Verizon is going to spend about $3.6 billion in spectrum from the cable companies.
Currently FiOS customers have access to about 30 networks over the web through FiOS TV Online.
[Reuters]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry