Verizon Loses 15,000 FiOS Subs in Q227 Jul, 2017 By: Erik Gruenwedel
Verizon July 27 reported it lost 15,000 FiOS TV video subscribers in the second quarter, ended June 30. The telecom ended the period with 4.7 million subscribers.
FiOS Video results were pressured due to softer secular demand for traditional linear video, given growth in the over-the-top offerings as well as competitive promotional activity.
Speaking on the company's fiscal call, CFO Matt Ellis was asked if Verizon had plans to take a bigger step onto over-the-top video than go90 — the video-centric mobile app.
“We're always looking, but we'll continue to evaluate what we need to do to be competitive in that space and then the need to be part of the portfolio or not,” Ellis said.
Verizon and Redbox partnered in 2012 to launch a video streaming service that would offer physical rental, transactional VOD and subscription streaming. The companies pulled the plug on the platform two years later.
Ellis said that from a convergence standpoint, he is “very comfortable” with Verizon’s current the product offerings.
“If there is more convergence, we certainly believe that will take place on our networks. And we'll be effective as being part of that,” he said.
The executive said the telecom wasn’t actively looking to acquire a third-party company, but that if an opportunity presented itself at a reasonable price, it would act.
“We think we have the assets we need to be effective at this point in time,” Ellis said.
Last month, Verizon closed acquisition of Yahoo and combined it with AOL to create “Oath,” featuring more than 50 media and technology brands that engage more than a billion people globally.
Tim Armstrong, former CEO of AOL, is now CEO of Oath, which is part of Verizon’s media and telematics organization.