Verizon Communications plans to launch a new over-the-top streaming live TV service service that would compete with Hulu, Dish and DirecTV Now, Bloomberg reports. The service would not compete directly with Netflix or Amazon Prime, whose catalog largely is built on movie and other pre-recorded content accessed on demand. The Verizon service would instead compete in the “live streaming” segment of the market that is a replacement for linear TV.
In large part, the move is designed to capture demand from consumers for lower-cost, skinny bundles of channels. Comcast seems also to be preparing to offer a skinny OTT bundle.
Pricing is expected to range between $20 and $35 a month, most expect, as that is the range for the competing services.
The Verizon move shows the “harvest linear, grow OTT” strategy the leading linear video subscription service providers are following. The launch also shows the importance of video entertainment services as a driver of consumer service provider gross revenue.
Beyond that, the OTT video launch also illustrates the strategy for larger tier-one service providers, which is to participate at the application layer of the media business in the consumer segment, and in the Iot, M2M and mobile advertising platform businesses in the enterprise customer segments.