Saturday, November 15, 2014

Verizon To Sell A Mobile Cable Subscription

With the purchase of Intel's OnCue business, Verizon is embarking on a plan to offer a mobile version of a cable subscription business according to Wireless Week. Using their LTE mobile spectrum, Verizon plans to deliver a cable-like platform of channels for consumers.  And while launch date, subscription pricing, and other information is yet to be announced, it appears that Verizon sees an opportunity to attract cord cutters with a new approach. 

Cord cutting continues to grow as 150,000 households shed their cable subscription as of July 1 of this year.  According to Mashable, Time Warner Cable and Comcast were hit the worst.  Verizon's new pay-TV service could further attract cable customers to shed their physical cord for a mobile cable experience.  Verizon already understands the overbuild mentality as it markets its FIOS business in markets with cable providers.  Verizon's mobile business could potentially cannibalize some of its own FIOS customers although cable opertaors are more at risk.  And FIOS could market a mobile package that delivers the ultimate in a TV Everywhere approach. 

As OTT continues to mature, and platforms like Hulu and Netflix attracting subscribers, networks like HBO, SHO, and CBS are developing their own OTT models.  Verizon's mobile platform could be a boon to these networks and others.  It may also allow Verizon to start over to build and bundle services that consumers actually want to watch at a price point that is acceptable to them.  And if successful, this new business could truly disrupt the cable subscription model. 

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