Verizon CEO confirms company’s plan to launching a streaming TV service

Verizon CEOLowell McAdam corroborated the companys plans to launching an over-the-top subsequently this year, according to a report from Variety, citing remarks the CEO made at a telecom conference in Boston this week. Verizon( which owns TechCrunch parent company AOL ), will use the combined platformof AOL and Yahoo and their 1.3 billion users to test the new platform, McAdam said.

The company expects to close on its acquisition of Yahoo mid-June, so the over-the-top service could arrive any time after that.

McAdams statements largely confirman earlier report from Bloombergwhich disclosed Verizons plans to enter the over-the-top live Tv marketplace with a package of dozens of channels tobe sold separately from its FiOS home TVoffering.

The service will also be separate from Verizons existing streaming video product go90, which has been struggling to succeed as an entertainment business.

The go9 0 servicehas been declared deadby at least oneindustry analyst; itsunit saw large layoffsat the beginning of the year, and the product has been rebooted. Despite the hype building up to its launching back in autumn 2015, go90 has not been able to pull in the user numbers it needs to be a viable property , nor has itproduced original video hittings that could get it on the map alongside the industrys big names, like Netflix, Hulu and Amazon.

Verizon has to decide if its worth sinking more fund into inducing go90 run, at this point, or scrap it.

But theinteresting thing about Verizon entering the over-the-top marketplace with its own is that it could become a home to go9 0s original video output, if the company did want to shut down the go90 app. That is, instead of trying to make go9 0 a brand that they are able stand on its own, Verizon if it was smart could use the content thats languishing over in that app, unviewed, to flesh out its live Tv offering.

That would give the companyan advantage in a crowded marketplace of competitors. For example, it would help it fight against Dishs Sling TV and Sonys PlayStation Vue, which both offer access to live Tv and select on-demand programming from broadcasters, but dont invest in originals.( Vues first and merely experiment with originals wrap last year ).

Meanwhile, Verizons live Tv service will also have to compete against Hulu, which does have its own original lineup and one thats nowbreaking through with its first genuinely big hit, The Handmaids Tale.

YouTube TV, too, will be a competitor to whatever Verizon introduces. And its originals( via subscription product YouTube Red) are meant to appeal to a younger demographic, similar to go9 0.

Go9 0 today features content from AwesomenessTV a company Verizon bought a 24.5 percent stake in and which has more recentlyscrapped schemes for its own standalone streaming product. The service also has proves from Rooster Teeth, BuzzFeed, Funny Or Die, CollegeHumor, Smosh, VICE, Elite Daily, Disneys Maker Studios, and others. Go90 and other Verizon properties can also river NFL football match, thanks to its $21 million rights deal.

McAdams statements didnt offer much in terms of what Verizon has in store for its live Tv service, merely that its on the way. He did, however, hint at Verizons openness to M& Aopportunities , noted Variety. This is inreference toremarkshe made in April, went on to say that the company would consider consolidations with Disney, Comcast or CBS, if the possibilities arose.

Ill say this about M& A: Theres a lot more energy on Wall street and in the media than there is in most industries at this point, McAdam said, according to Varietys report. If there were an opportunity to accelerate the strategy, you should look at that.

We could be a significant player for delivering broadband and video over-the-top, the CEO also said .~ ATAGEND

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