Is Verizon Communications Inc. (NYSE:VZ) Ready To Launch Digital Video Service Over Internet?

Boston, MA 09/15/2014 (wallstreetpr) – Telecommunication services provider Verizon Communications Inc. (NYSE:VZ) seems to be prepared to join the digital video service market through the internet. For this, the company would have to take on heavyweights in the industry such as Internet television service provide Netflex, Inc. (NASDAQ:NFLX) and also, Inc. (NASDAQ:AMZN)’s Amazon Prime Video.

Technology In Place

The advantage for Verizon Communications Inc. (NYSE:VZ) is that it has most of the equipment and technology in place, which would position itself to launch a service, Yahoo Finance reported. All that it requires is to negotiate with content partners since they have their own network of FIOS. It already possesses the network capacity.

During an investor conference on September 11, the company Chief Executive Officer, Lowell McAdam, indicated that the company was not averse to launching an ‘over the top’ or digital video service through Internet. He even said that it could launch the service by the middle of the next year indicating the confidence.

The comments from the CEO assume importance since such a comment from a senior management official would not have come without the groundwork being done by the company. However, the space would become a more crowded one, and the stiff competition would likely put pressure on pricing, which, in turn, would likely impact the results, particularly the rivals.

Broadcasters Warm Up

While broadcasters have seized of the matter of livestreaming of linear TV concept, analysts’ believe that companies like Verizon Communications Inc. (NYSE:VZ) and other streaming service providers would gain. Significantly, broadcasters, especially The Walt Disney Company (NYSE:DIS), are promoting bundled cable services value though the customers end up in paying for channels, which they would not like to have. However, the industry seems to be shifting towards streaming services though the pace may be slower currently.

According to Mike Santoli, an analyst, there exists a 70 million cable household market that focuses on big packaged programming bundle of services. He predicted that these were the possible markets for companies like Verizon Communications Inc. (NYSE:VZ) to venture into it for the digital video content.

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Published by Flavia Carruth

Hi, I am Flavia and have done my MBA with finance as specialization and a Bachelor in Economics with 4 years of experience as Financial Analyst in leading Software Firm. I have passion for article writing, report making and stock market Analysis.

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