The Chief Executive Officer (CEO) of Verizon Communications Inc. (NYSE:VZ) revealed on Thursday at an investor conference that the company will be launching its own “over the top” content services mid next year. The telecom giant will be joining other companies like Netflix (NFLX) and Amazon Prime Video (AMZN) that have been offering similar services.
The CEO, Lowell McAdam, said that Verizon Communications Inc. (NYSE:VZ) has the needed equipment to deliver such content and is only in latter stages of negotiations with content providers ahead of the launch. Until recently, the content providers were reluctant to authorize the release of their content to be delivered over the internet, but they’ve since changed tone due to the growing demand for online content.
The confidence expressed by Verizon Communications Inc. (NYSE:VZ) is believed to be stemming from its acquisition of Intel’s OnCue assets in January. This is in addition to the company’s existing network that’s reaching millions of households. Their existing network also puts them on a good position to negotiate with content providers since they will only be focusing on the delivery of such content.
“I think over-the-top video is right around the corner,” Mr. McAdam said, referring to delivering video via the Internet. “We’ve got the assets in place, and I don’t feel we need an awful lot more.”
It’s no doubt that the market is changing and many more broadcasters are warming up to the idea of delivering content online. Many people also own very powerful mobile devices that allow them to have access to linear TV without the need of having such services tied to a specific TV set.
The CEO went ahead to say that they will be targeting media content that are focused on young people such as DreamWorks Animation’s AwesomenessTV.
Verizon Communications Inc. (NYSE:VZ) is looking forward to a service that’s more like Netflix, NFLX, and Hulu, but with some live channels as well.
This article has been written by Victor Ochieng.