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).Netflix CEO, Reed Hastings (pictured), said at the UBS Global Media and Communications Conference in New York, " .. subscribers will stream more than 1 billion hours of content in the current quarter".
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.
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I think whatever Verizon releases would be more competition for Netflix if it were offered to everyone, not just everyone who cannot have Fios. There are many streaming services around now, but the only one that holds true value is the Blockbuster Movie Pass from DISH Network. Since I have the pass, I have been able to compare it with Netflix and it offers me much more. I pay only $10 but that covers 20 extra premium channels, streaming, and DVD/Blu-ray and video game rentals. After finding something that works, it is very hard to convince that person to try something else. Even though I work for DISH, I have found that the Blockbuster Movie Pass is perfect for me, and so far, what Verizon has planned does not sound like anything I am not already getting.
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