Verizon Communications Inc VZ and A+E Networks have signed an extended carriage deal, which will broadcast A+E Networks programming in the company’s digital and mobile media platforms.
The deal covers A+E cable networks which include A&E, History, Lifetime, Viceland and FYI. Verizon’s FiOS customers can access the network’s programming, comprising shows like Knightfall, Vikings and Live PD on their mobile devices. Verizon will also continue to stream games like National Women’s Soccer League on Yahoo Sports and Go90 platforms.
Verizon’s digital content will work with A+E Networks’ digital content studio 45th & Dean to develop and produce programming of different durations. The companies are primarily targeting young viewers and consumers who do not subscribe to traditional pay-TV packages.
The financial terms of the new deal have been kept under wraps.
The deal with A+E Networks follows after Verizon’s recent five-year digital streaming deal with the National Football League (NFL). Effective in January, the deal will stream in-market NFL games across Verizon’s Oath. Additionally, the deal will enable mobile access to NFL highlights and coverage. The telecom service provider had paid approximately $2.25 billion to stream NFL’s content on its digital and mobile media platforms.
Digital Media Prospects
Verizon has been working hard and strengthening the foundation of digital media suite.
Oath is Verizon’s newly-formed company under Media and Telematics organization. It is Verizon’s digital content and online advertising suite. The company oversees Yahoo and AOL. It has a diverse portfolio of more than 50 media and technology sites like Yahoo News, HuffPost, Engadget, TechCrunch, MAKERS, Tumblr, BUILD Studios, Yahoo Sports, Yahoo Finance, Yahoo Mail and others. Verizon acquired AOL Inc in June 2015 and the core businesses of the Internet-company, Yahoo! Inc. in June 2017. In October 2017, Verizon announced the offering of Go90 content across some of its Oath brands. Go90 is Verizon’s video streaming service.
With plans to include A+E Networks and NFL streaming under Oath, Verizon projects more than $20-billion revenues by 2020. Such important deals are likely to ramp up Verizon’s advertising revenues.
With Oath, the telco has managed to reach more than 200 million mobile and digital viewership in the United States. On the back of Oath and other prospects, Verizon intends to compete against the dominant players in the online and digital video advertising market, which includes Facebook Inc. FB, Alphabet Inc. GOOGL and Autohome Inc. ATHM.
Zacks Rank & Price Performance
Currently, Verizon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Verizon portrays an impressive price performance. In the past six months, shares of Verizon have rallied 20.8% compared with the industry’s gain of 5.8%.
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