VERIZON’S LIVE TV SOUNDS LIKE HYBRID OF NETFLIX, SLING TV
With AT&T releasing DirecTV Now late last year, the next logical question is: What’s Verizon going to do with live TV?
The company is absolutely building something, but it’s keeping mum on specifics for now.
“I don’t want to do just a me-too thing,” said Verizon executive Marni Walden at a media conference last week.
The quote is the most insightful hint yet at the carrier’s plans for launching its own streaming cable TV alternative. At the very least, her statement reaffirms that Verizon’s vision of the future of TV veers from that of rival AT&T, whose DirecTV Now streaming service features a very traditional lineup of channels. It also suggests Verizon is going to diverge from the growing crop of internet TV companies, which includes Hulu, YouTube and Sony’s Playstation Vue. Backing up a bit, Verizon CEO Lowell McAdam first confirmed a few weeks ago the firm’s intentions to become a virtual multichannel video programming distributor (vMVPD), which just means it’s going to be an online cable TV provider. At the time, he shed little light on what the over-the-top (versus over-the-air) product would look like or what programming it would include. Enter Walden, Verizon’s executive vice president of media. Her additional statements, while opaque at times, not only reassert the company’s plans but also suggest a desire to blend original material with live TV standbys, including sports. Here’s what she said, when asked by an audience member about Verizon’s vMVPD plans: “We do expect to do that. I’ll leave the timing out. It’s not way, way off in the distant future, but we do expect to do that. AOL and Yahoo coming together is a big portion of that. We also acquired the Vessel team. …They’re the team who originally built Hulu.”
And then, specifically on content, Walden had this to say. “This has been one of the great things about go90, even though it has been targeted at a much younger audience, we’ve learned a lot about just having a bunch of content isn’t necessarily a winning strategy. I think you can’t have too limited. But too much is a problem.
“Now what we know, originals are important. That’s been helping drive audience. Sports is really important. This content that’s surrounding those things has been real critical. So I don’t want to do just a me-too thing. I think that’s not where we’re going to win. You’re going to see us think about it in a little bit of a different way … . It’s definitely not quantity; it’s the right quality. There are some things you have to have, but we’re not looking for the kitchen sink on this one.”
I interpret those remarks to mean this: Verizon is creating an online pay TV product that is equal parts Netflix and Sling TV, with premium shows and live sporting events being the biggest draws. So it’ll be the equivalent of a skinny bundle that is more interest-based than channel-driven. And that means you could see Verizon ramp up its existing partnerships with the NFL and NBA to make sure viewers get games regardless of what broadcast network has the TV rights.
Whatever the case, Verizon’s entry into the online pay TV business will continue to push the boundaries of what’s available to consumers in the streaming universe. And that’s ultimately a good thing for everyone who wants to enjoy their favorite programs and sports without a costly cable subscription.
Verizon’s entry into the online pay TV business will continue to push the boundaries of what’s available to consumers in the streaming universe. And that’s ultimately a good thing for everyone who wants to enjoy their favorite programs and sports without a costly cable subscription.