Tuesday, December 6, 2011

Verizon to Launch Over the Top Streaming Service?

Verizon Communications plans to launch an over-the-top video streaming service allowing customers to stream movies and television shows over the Web, Reuters reports. Though the idea might be bold and breath-taking in concept, the initial programming line-up might be rather limited.

Reuters says the package of programming would be limited in scope. If multi-channel video programmers get their way, and they will, the service is highly unlikely to feature any of the video that normally is a staple of cable, telco and satellite video services. That is going to severely limit the appeal of the rumored service. 

Many will see the analogy to Netflix, but the offerings are likely to be quite a lot more restricted than what Netflix offers, for the simple reason that it would cost billions of dollars to get distribution rights even for movie fare, and it seems unlikely Verizon is willing to do that. 

The idea seems to be to create a streaming video service that could reach potential video prospects outside Verizon's fixed network footprint. But that's the sort of deal video content suppliers are most likely to resist, as it threatens the lucrative business programming networks now have with their cable, telco and satellite distributors. 

The new service could be rolled out in 2012, Reuters reports.  Verizon to take on Netflix with Web service

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