In a bid to squeeze out maximum revenues, wireless operators explore all possible avenues within their service offerings. Verizon is all set to exploit the new high tech capabilities of smart phones, the need for people to watch TV on the go and a likely source of rich revenue.
According to reports, Verizon is planning a wireless video Pay TV Plan to provide mobile enabled TV viewing to its customers. Discussions are on with television content producers even as they initiate the process of FCC and DOJ approvals for the transition by purchase of spectrum from cable operators. The deals with Comcast and Time Warner will involve a mind-boggling sum of $3.9 bn. Lowell C. McAdam, CEO of Verizon, is very optimistic about this and expects the Pay TV plan to be well received, especially for the summer vacations.
Verizon is also said to be in a tie-up with Redbox to provide streaming video rental services, expected to provide a strong competition to Netflix. Though how many will like to watch movies on a small 3- or 5-inch screen is a moot question, but maybe, just maybe, acceptable in tablets with larger hi-res screens.
If and when this does become a reality, Pay TV customers will be able to watch TV on their mobile, raising the bar on TV services and opening up avenues for all kinds of services to leverage the unique advantages of this personalized delivery with its decided advantages over the currently available Wi-Fi access. It is expected charges will follow the usual pattern of pay for usage rather than a comprehensive cover it all plan. Interestingly, Microsoft is said to be considering adding Comcast and Verizon’s offerings to their Xbox customers.