According to sources like The Wall Street Journal and Huffington Post, Verizon CEO Lowell McAdam told participants at a recent investor conference that the company plans to launch an Internet-based TV service in the first half 2015 that will include à la carte options and not just big, expensive bundles.
From Huffington Post
Verizon is finally ready to acknowledge that cable TV just isn’t working for a lot of us anymore.
The company is planning to launch its Internet-based TV service that can be watched on mobile devices in the “late first half of 2015,” Lowell McAdam, Verizon’s CEO, said at a Goldman Sachs investor conference in New York on Thursday.
It’s unclear what exactly the service would look like, but McAdam said it would offer “a la carte” options, rather than being bundled like expensive cable packages are now.
Think Netflix, but with live streaming. McAdam said at the conference that the service would include programming from “the big four” networks — CBS, ABC, NBC and Fox.
“No one wants to have 300 channels on your wireless device,” he said, according to a transcript of the conference. Greg Ireland, a research manager at IDC, the technology research firm, said Verizon’s offering could borrow ideas from services like Netflix or Amazon Instant Video, which offer interactive menus and will remember where you are in a program, regardless of what device you started watching it on.
Verizon’s move comes as the TV industry is set to undergo a massive shift. The rise of streaming services like Netflix, Amazon Prime Instant Video and Hulu, which for a flat fee offer on-demand viewing of movies, TV shows and original programming, pose a threat to traditional “linear” cable and satellite. An increasing number of people — especially young people, a highly coveted demographic for advertisers — are cutting the pay TV cord and opting for streaming services over expensive cable or satellite packages. According to a report this spring from Experian Marketing Services, nearly a quarter of young adults between 18 and 34 who subscribe to Hulu or Netflix don’t pay for TV.
To read the complete Huffington Post story, click here.
• CBS Sports HD Now on Verizon at HomeTheaterReview.com.
• Verizon Eyes 2015 Launch for Internet TV Service, Chats à la Carte Options at Engadget.