In order to make is upcoming Internet TV service an instant hit, Verizon Communications Inc. VZ is emphasising on college sports TV programs. The mobile video service of the company is slated to launch later this year and will feature 20 to 30 top-rated TV channels. Verizon stated that its targeted audience will be millennials (teens and young adults) who will be served largely through mobile video offerings.
Verizon, which is currently the sixth largest pay-TV operator in the U.S., seeks to focus on two different categories of viewers through its Internet TV service and fiber-based FiOS TV offerings. Notably, the company started developing Internet TV services after its acquisition of OnCue online video assets of Intel Corp. INTC in 2014.
Verizon’s mobile video service will offer several college sports programs from major content developers like CBS Sports, ESPN, ACC Digital Network, Campus Insiders, and 120 Sports. Last month, the company announced that its Internet TV offering will include channels like AwesomenessTV and DreamWorksTV, and will feature more than 200 hours of original programming.
Internet TV is gradually gaining market traction in the U.S. Of late, the legacy pay-TV industry in the country has been facing severe competition from online video streaming service providers. The low-cost over-the-top video streaming service has resulted in massive cord cutting that is currently threatening the pay-TV business model. Internet TV has emerged as a strong alternative to counter this competitive threat.
In Feb 2015, DISH Network Corp. DISH had commercially launched its Internet TV service called “Sling TV” throughout the U.S. The Sling TV service is available for $20 a month and offers several top-rated channels. Customers are also offered add-on packages for an additional $5 per month.
In the same league, the U.S. division of Sony Corp. SNE recently launched its new PlayStation Vue Internet TV service in New York, Chicago and Philadelphia. The service is set for a national rollout later this year.
Additionally, AT&T Inc. T entered into a partnership with Chernin Group to offer similar services and is currently awaiting regulatory approval for its proposed takeover of DIRECTV, the largest satellite TV operator in the U.S.
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