Earlier this year Verizon's CFO, Fran Shammo, said about OTT video services - "It's not something that's top of mind for us it would be hard to create a successful "over-the-top" business model without offering something that's very different to what consumers can already get".
An exclusive story by Yinka Adegoke and Sinead Carew (pictured) for Reuters claims that this may change soon - "Verizon Communications Inc plans to launch a standalone service allowing customers to stream movies and television shows over the Web, in a fresh challenge to Netflix Inc and the traditional cable TV business, according to several people briefed on the plan .. which would be introduced outside of markets where it currently offers its broadband and TV package, known as FiOS .. That would make it available to some 85 million U.S. households .. The new service could be rolled out in 2012."
See "Exclusive: Verizon to take on Netflix with Web service" - here.
So in what ways the Verizon service will be different? A short status check with Netflix could show the challenges (beyond the issue of buying the digital rights).
According to Erik Gruenwedel report for Home Media Magazine Mr. Hastings added that "Netflix envisions becoming a global brand going after two-thirds of the world’s “entertainment GDP” ". See "Reed Hastings: ‘We Got Overconfident’" - here.