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Verizon Joins CDN Movement
19 Nov, 2008
Verizon announced they are launching their own content delivery network (CDN) to “distribute content that Verizon contracts for directly with content owners like movie studios, TV networks, video rental sites and entertainment services…” The CDN is being phased in through a business relationship with Velocix, a U.K.-based digital asset-delivery network provider. Velocix will provide CDN services utilizing p2p technology to Verizon. "Verizon is now positioned to offer content owners and video distributors a competitive choice in delivering their services to our broadband customers," said Marjorie Hsu, Verizon vice president for network technology. "With our new delivery capability, content owners will be drawn to our networks, and our customers will be the beneficiaries of a broad range of compelling content services."
Verizon joins an increasingly crowded CDN landscape. CDN’s are growing as broadband and high capacity network owners aim to leverage their core networks for the growing business of content delivery to a plethora of network connected devices. By creating their own CDN capability, Verizon and others eliminate the need of contracting with other transport networks to distribute content, thus hopefully increasing margins. Companies like Verizon may be attractive to content owners, because in addition to robust CDNs, they also offer millions of existing broadband customer relationships. The first example of this Verizon collaboration is Starz Entertainment's Starz Play broadband entertainment service, which “provides unlimited online subscription access to more than 2,500 movies and video selections on demand, in addition to a live stream of the Starz premium pay TV movie channel.” It’s yet another example of broadband service providers trying to leverage core strengths for competitive advantage.
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googleVerizon Readies Starz Movie Download Service
27 May, 2008
Verizon announced the launch of Starz Play, an online video distribution service of Starz Entertainment. Verizon will make the Internet delivered video service available to its 8.5 million broadband subscribers. Starz Play is a subscription-based, video download service for delivering movies and other video content over the Internet. It offers a wide variety of first-run hit movies, movie classics, and other content options. Verizon subscribers can access the service anywhere in the United States to watch live Starz programming and to download and view movies and videos an unlimited number of times at no additional charge. The Verizon Starz Play subscription will be offered at $5.99/month for up to three approved Internet connected devices.
Starz Indicates Downloading Having Little Impact on Subscription TV
09 Jun, 2007
As Internet video downloading expands, its competitive implications on traditional subscription video models are debatable. Starz Entertainment recently divulged that its Vongo movie download service apparently has minimal impact on its bread and butter subscription pay TV service. Light Reading reports on their cable digital news site, that Joe Cantwell, Starz vice president of marketing for advanced services, revealed that Vongo is not negatively impacting Starz subscriptions. Cantwell revealed some interesting data about Vongo. For example 30 to 36 percent of the Vongo subscriber base transports Vongo content from the PC to their TV and their subscriber base "skews heavily" towards men with an average age of 38.
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Telecompetitor is a leading industry blog covering the telecom competitive landscape. We provide insight, analysis, and commentary on the issues and implications of the evolving telecom competitive landscape.
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Should Telephone Service be Free?
12 Oct, 2008
Comcast announced a new promotion last week that offers 12 months of free basic cable service for new customers who also sign up for an additional service. Customers who don’t want an additional service can get Comcast’s basic service of about 20 -30 channels for $10/month. The promotion is tied to the digital TV transition of February 2009 and entices potential customers to avoid the transition “hassle” by getting “free” cable service. “The simple fact is that basic cable is the easiest path through the digital transition and now consumers can get it for free,” said Derek Harrar, General Manager and Senior Vice President, Video Services for Comcast in a company statement. This move is similar to strategies pursued by other video service providers, who are hoping to leverage the digital TV transition for new subscriber additions.
But is this strategy a leading indicator for the future? Should basic core services like basic cable and basic telephone service be offered for free, used as a “carrot” to entice customers to buy “more important” services like broadband? Maybe a very basic phone service, with no LD, access to landline 911, and maybe outgoing service only (to avoid telemarketers) should be a free component of a bundled offering. Such a wireline service may appeal to a customer who previously cut the cord for wireless only, but also needs broadband. There is a growing portion of the population who find the value of traditional wireline phone service elsewhere – either through wireless or broadband/IP services. But, if they could get the security of landline 911, and an extra dial tone in their home as a free value add for subscribing to broadband (or video from a telco’s perspective), maybe a telco’s bundled offering may look more attractive than a comparable cable offering. I realize this idea is not appealing to the hundreds of ILECs who are a part of the current access/settlement system (in fact, it couldn’t work in the context of today’s regulatory structure), but I wonder whether it’s inevitable. In this possible future scenario, the current settlement system adapts to broadband as the underlying service, as opposed to voice.
This scenario cuts both ways. From a cable company’s perspective, a growing portion of the population is turning to the Internet as a source for their video content, and no longer see value in paying for a broad package of video as a part of a traditional subscription pay-TV service. But, if they could receive basic TV (which includes local broadcast affiliates) as a free value add for buying broadband, maybe the cable bundle is more attractive. In a true IP/broadband world, very basic phone and video service is relatively easy to deliver, and has little impact on bandwidth and network performance. Maybe the digital transition is opening the door to a future where free basic services are a regular component of a bundled offering. Thoughts?