Verizon negotiating with content providers for online video service
Reuters reports that wireless carrier Verizon is currently holding talks with content providers on starting an online video service. Verizon is apparently talking with the providers about a web-based TV service for mobile platforms. The tip about the service came from Verizon CEO Lowell McAdam on Tuesday.
Verizon says that its goal "is to work with content providers."
"I have personally had discussions with the CEOs of the large content companies, and we would love to partner with them to see how we can take FiOS contact mobilely across the country." McAdam said.
The service that Verizon is talking up would be served over wireless connections, not just broadband in the home. This sounds like a great way to consumer the meager data allotments Verizon offers to me.
"I think you can actually get a virtuous cycle where broadcast viewing goes up and over-the-top viewing goes up, if you time this properly," McAdam said.
McAdam also noted that the company expects Netflix to pat for faster video delivery as part of the interconnect deal. Netflix made a similar deal with Comcast recently.
"I have spoken live and via email with (Netflix CEO) Reed Hastings, and I believe that we will get some sort of an arrangement with them as well," said McAdam.
I can’t help but wonder what effect Netflix paying for faster service from ISPs will have on subscribers. If the costs go up for Netflix, odds are the costs will go up for subscribers.
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