Verizon Communications plans to launch a movie-and-TV streaming service that would compete with Netflix, cable TV systems and potentially Amazon, Reuters reported Tuesday. In a strategy that would make the service available to 85 million US households, Verizon is talking with prospective programming partners about introducing the service outside markets where the phone company offers its broadband and TV package known as FiOs — which currently has 5 million subscribers. Verizon’s new service could be rolled out next year, according to one of the sources Reuters cited. The programming package would be limited in scope with a focus on movies similar to Liberty Media’s Starz Play and Viacom’s Epix. It could also include children’s programming from Disney or Viacom. The latter’s CEO Phillipe Dauman said at a UBS conference this week Viacom wold be willing to negotiate with other broadband services. Epix’s exclusive online-streaming contract with Netflix for movies from Paramount Lionsgate and MGM expired next September. News about the new streaming service follows in the wake of sister company Verizon Wireless’ plans to resell cable TV service for Comcast Corp, Time Warner Cable Inc and Bright House Networks in exchange for paying $3.6 billion to the cable companies for spectrum.


Great! Another player taking a slice of the content pie and another entity for the consumer to pay every month.
HBO, Showtime, Cinemax, TMC, Encore, Starz, Epix, Netflix, Blockbuster, Hulu, Vudu, Amazon, iTunes, etc. At one point you payed HBO and Showtime and you pretty much were assured of being able to see almost all the major movies at home a year or so after they came out. Now everyone that can is nickel-and-diming us to death with ‘low’ monthly fees for ever smaller portions of overall content.
On the consumer end it’s not only expensive but confusing as well. Who has what movie available? What service do I sign up for to see episodes of Seinfeld? Will some ‘deal’ expire somewhere and thus I won’t be able to see the movie or show on my service anymore?
Unfortunately given their resources, Verizon can start up and stay in this game for a long time. They can also make life miserable for companies (i.e. Netflix, Hulu) who streams content to Verizon’s internet customers. Wave bye bye to any pretense of Net Neutrality.
The pond gets bigger, leaving a thinner veneer of content on the top.
The reward may get bigger too if you can hope for 300 million people to pay $1.00 for a night of your show.
If even more elephant wallet companies get involved, it could be a tidal wave of sources looking for content. If you can put together 26 episodes of cheap and cheerful, you may have a lot of tire kickers at your door. The big question will be is who is going to start up their own production arm, instead of just waving a checkbook around for already completed packages.
Once we settle into that rut, the new Hollywood will be here.
I agree that this just furthers the Balkanization of entertainment distribution. All the entertainment companies sign exclusive deals meaning content is spread all over the place making all of it much less attractive to consumers.
Look no further than the pay cable channels and their movie deals. It has become pointless to subscribe to movie channels now for movies. Being locked into a couple of studios for each channel equates to a horrible consumer experience.
This divide and falter strategy the entertainment industry is using is going to be very succesful in causing it all to implode. Add to this their desire to resell each piece of content 10 times before it gets to a streaming service and this all has no chance of sustainability.