Verizon’s promised mobile video service may be an ad-based model that eschews subscriptions, according to CFO Fran Shammo. Regardless, it's likely to push mobile data usage high enough that the company will see that revenue stream grow, too.
To date, other services, like Sling TV and Playstation Vue, are relying on a more traditional subscription-based model, as well as taking in premium mobile ad dollars.
Verizon added more than $15 billion to its corporate coffers today, selling local wireline operations serving customers in California, Florida and Texas to Frontier Communications for $10.54 billion and agreeing to lease the rights to more than 11,300 of its wireless towers to American Tower, which will also purchase 165 Verizon towers, for a total of about $5 billion.
Verizon said it will use $5 billion for an accelerated share-repurchase program.
Verizon CFO Fran Shammo, during a Q&A with analysts during the company’s earnings call, said the telco would be launching its over-the-top mobile first video product sometime this summer, and pointed to recent OTT developments with content owners and operators as a sign that the industry was at a turning point.
LAS VEGAS -- In March, Verizon CEO Lowell McAdam said he’d had “personal talks” with the CEOs of large content companies about partnering with them to take their content nationwide on Verizon’s mobile network, creating a mobile MSO.
Last month, Verizon offered potential customers in New York City a free year of Netflix service and a $150 gift card if they signed up for FiOS Triple Play bundle.
Now, the telco has decided to offer the deal to new customers nationwide through Jan. 17.
The bundle, voice, Internet and TV (including HBO and Showtime) costs $60, a price that’s good for 12 months.
The battle between Time Warner Cable, Cablevision and Verizon FiOS for dominance in the five boroughs of New York City has heated up to the point that Verizon now is offering a free year of Netflix service, plus a $150 Visa gift card to subscribers who opt to go with its triple play bundle.
The deal is being pitched on commercials airing in the New York market, commecials that mention Netflix five times.
While Verizon today reported Q3 earnings and revenues close to analysts’ forecasts (see below) much of the earnings call was spent talking about its plans for wireless LTE delivery of live video, and the company’s outlook for broadband-delivered over-the-top services.
CFO Fran Shammo called last week’s news that HBO and CBS intend to go over the top directly to consumers a “positive step for consumers and the industry.”
Verizon (NYSE: VZ) earnings and revenue beat analyst estimates and reported it had added 139,000 FiOS Internet users and 100,000 FiOS TV users in the second quarter.
The telco earned an adjusted 91 cents per share, 1 cent more than expected, and better than the 73 cents per share it earned a year ago.
Revenue was $31.48 billion, $380 million more than Wall Street forecasts and a 5.7% Y/Y increase.
Now that AT&T has made a play for DirecTV, ostensibly taking the satellite TV provider off the market, the rumors have started anew about a possible tie up between Verizon and Dish Network.
DealReporter, citing unnamed sources, is saying Verizon has held talks with the No. 2 satellite player, giving Dish share prices a bit of a bump as investors perk up.
That sound you heard was the other shoe dropping on Verizon’s eternal quest to develop a virtual pay-TV offering.
The company, which has been on an acquisition spree à la Cisco of old (why build a business when you can buy one?), today announced it’s purchasing Intel Media, which includes the stuttering virtual MSO startup OnCue.