In the latest example of the devastating impact of cord-cutting on the TV titans, today we learned that Verizon has reported a net loss of 18,000 Video customers (versus a gain of 36,000 in the year-earlier period) for the third quarter of 2017.
Verizon streaming TV
Verizon CFO, Matt Ellis admitted today that the losses are representative of an “ongoing shift” towards cord-cutting solutions like DIRECT NOW, Sling TV, PS Vue, Hulu Live and others and he indicated that Verizon is developing a cord-cutting friendly OTT service of its own in order to compete.
This service was initially expected to be ready by now, However, Ellis indicated that the negotiations with content providers were taking longer than expected and that the launch would not likely take place until sometime in 2018.
Despite the setbacks, Verizon is banking on its FIOS broadband fiber network infrastructure in order to give it a competitive advantage in the rapidly crowded OTT space. For example, here is a list of the top cable broadband providers by population base:
Verizon FIOS internet is in 7 states with a total population reach of 33 million, placing them 3rd when compared to the reach of the top cable internet providers. In light of this, It could be a compelling proposition if Verizon could offer a complete end to end solution for cord-cutters that would include an unlimited, non-capped broadband package along with an attractive over the top solution. They are consistently ranked at the top of customer satisfaction surveys for their FIOS broadband product and as you can see from the chart below, they are among the fastest.
Ben Munson, editor of Fiercecable offered this: “When or if the service does launch next year, it will be entering a fairly mature vMVPD market where more established players like Sling TV and DirecTV Now have settled in and more recent upstarts Hulu and YouTube TV have begun to ramp up national marketing efforts.”
What do you think? What would Verizon need to offer in order to differentiate itself in the OTT market? Share your thoughts in the comments below: