CEO: Verizon Testing OTT Video in 20147 Jan, 2014 By: Erik Gruenwedel
Verizon Communications reported interest in Intel’s aborted video streaming platform could be more than scuttlebutt.
Speaking Jan. 7 at the Citi Internet, Media & Telecommunication confab in Las Vegas, Verizon CEO Lowell McAdam said expanding Verizon’s FiOS TV content beyond its fiber-optic network to authenticated mobile devices should be not be problematic with content holders.
McAdam said that the telecommunication provider’s relationship with content holders through its joint venture with Outerwall and Redbox Instant, among others, has paved the way for tests of standalone over-the-top video platforms with select content holders in 2014.
“Clearly, taking your FiOS TV content and mobilizing it no matter where you are … is I think comfortable for the content providers, and it is certainly something our technology can do,” McAdam said.
Indeed, Verizon has been linked with interest in acquiring Intel’s aborted OTT platform — a transaction that reportedly could be worth $500 million. Intel dropped the platform as third-party content costs began to escalate exponentially due in large part to efforts by Netflix (and Amazon Prime Instant Video) to nail down exclusive subscription streaming rights to exclusive content — notably Netflix with Disney and DreamWorks Animation; and Amazon with Viacom.
“I expect 2014 to be about partnering with a few of the content providers to test a couple of the different models of pure over-the-top [video] wireless play and see where that takes us,” McAdam said. “When you’ve got a network like the wireless LTE network that is capable of the video performance, we argue you have to take look at being a national [video] provider, but again, with some partners.”