The Christmas spirit has set in early for Verizon Communications Inc.’s (VZ) FiOS customers as the TV app of the same is now available on Microsoft Corporation’s (MSFT) Xbox One gaming console. Notably, FiOS is the fibre optic based bundled internet, telephony and video service of Verizon.
The app is available only in the U.S. and can be downloaded by FiOS Internet and TV subscribers, who are also Xbox Live gold members. Subscribers can watch live cable television on their Xbox by using the free app. Customers can choose up to 74 different channels depending on their package and include some of the most popular ones like HBO, NFL Network and Comedy Central.
No additional cable box is required for the service and customers can avail the voice and gesture commands to control the TV through Xbox One Kinect. Customers can customize their personal favourite programs through Xbox OneGuide or can place their favourite apps and contents to the home screen.
Cable rivals Comcast Corp. (CMCSA) launched its Xfinity app on Xbox in Mar 2012, while Time Warner Cable Inc. (TWC) released TWC TV app in the summer of 2013. However, none of the other companies have so far tried their TV app on the new gaming console, making Verizon the first company to launch it on Xbox One. Verizon initially launched its FiOS TV app on Xbox 360 in Dec 2011.
Verizon reported solid FiOS sales in the third quarter of 2013. During the reported quarter, Verizon added 135,000 and 173,000 new customers to its FiOS Video and FiOS Internet services, respectively. The company exited the quarter with 5.2 million (up 12.6% year over year) FiOS Video customers and 5.9 million (up 12.6%) FiOS Internet subscribers.
With Christmas around the corner, the sale of console is only expected to rise. We believe Verizon has strategically timed the release of the app on the console to tap new gaming customers. With Verizon’s superfast speed and reliability as well as Microsoft’s technological advancement, customers can expect a seamless video streaming experience on their console.
Verizon currently holds a Zacks Rank #2 (Buy).
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