Cable on Mobile, Will You Buy it?

Are you still watching live sports or shows on your Television? Even a home DVR (Digital Video Recorder) service is out of date with the fascinating Internet technologies. If you download the latest vision of GO90 in App Store or Google Play, you are portable to watch any Verizon FIOS program or streaming live sports without any data charge at any time.

Introduction

Covering major parts of New York, New Jersey, and Pennsylvania and 9 states’ main trend internet service across the country, Verizon FIOS makes remarkable contribution to the internet and TV cable service subscription (Broadband, 2015). FIOS was known as the Frontier FIOS (Fiber Optic Service) and offered 6 states’ internet and communication service(PC Review, 2016) via “identical network infrastructure (Broadband 2015)”. Among cable and satellite companies, most deliver content to customers’ television set using cable strung (Consumer affairs, 2016). FIOS uses fiber along power lines buried underground to rank 2rd in this September’s Ookla national ISP (Internet Service Provider) speed study (Sascha Segan, 2017).

A traditional FIOS TV set uses a hybrid service where “linear television is distributed via QAM (Quadrature Amplitude Modulation)” and on-demand video is delivered over IP (Internet Protocol).  Differ from that, the new GO90 App launched in March this year by FIOS combines both in IP delivery and streams content to “virtually any Internet-connected device” in a more quickly way (Mari Silbey, 2017). By collaborating with NBA League, NFL and other sports platforms, GO90 has passes to these games with no cost for access (GO90, 2017).

Assets

As FIOS has pushed its streaming service to a competitive height using its FTTP (Fiber to the Premises) technology (Zen 2017), GO90 can be used by all the family members at the same time without losing any network speed. The user interface of GO90 runs smoothly on cells, TV screens or even your laptops. Its new cloud based technology can allow every member in a household watch the live or time-shifted content at the same time, which means a more effective way for ads distribution.

These feature makes Verizon a hit on mobile terminal distribution. It is hopeful to see Verizon FIOS regains its customers, after the “loss of 282,000 traditional copper DSL (Digital Subscriber Line) customers”, by knowing the audience’s habits of watching TV nowadays (Sean Buckley, 2017). Its abundant channels cover Daily Vice, ESPN, and most of the popular late-night shows.

Business Model

GO90 creates a new model in Cable business dates back to the end of 2015. But customers did not accept it then. The key points in supply chain distribution is how to attract your customers and make the “delivery process” successful (John R Hall, 2017). It is hard to deny the effort FIOS has made in channel development, including the fiber technology and the convenient terminal frame construction like GO90. However, in a media world, where content is king, Verizon FIOS cannot be as attractive as AT&T though its network speed is higher, as the later owns Time Warner to create programs. Is the GO90 the only weapon of Verizon FIOS in distribution?  Verizon’s CEO Lowell McAdam talked to Bloomberg news that he would entertain deal talks with Comcast CEO Brian Roberts and AT&T CEO Randall Stephenson to achieve “merger possibilities” in media business this April. “Randall buying into content has made people reevaluate their portfolio,” McAdam said of Randall Stephenson (Scott Moritz, 2017). It will be much easier for Verizon to cooperate rather than create content considering the cost.

Revenue Model

As Verizon ramped up in the last year’s internet speed construction, FiOS continues to be the main star in Verizon’s consumer wireline portfolio with revenues growing 4.4%, to $2.9 billion, up from fourth-quarter 2016 with fourth-quarter 2015. Full-year FiOS revenues were $11.2 billion in 2016, up 4.6% compared with 2015. Statistics show a climb of subscription in the first 2 quarter 2017 (Sean Buckley, 2017).

In terminal area, Verizon’s most prominent entertainment investment so far has been GO90 mostly among 16- to 24-year-olds though it is eager to original video programs like NETFLIX. According to the website Statisa and Ycharts, there will be nearly 180 million users in the U.S. using their phones to watch video content by the year 2020. What’s more, Statisa foresees there will be “approximately 124.2 million users in the U.S. watching video from their tablets (Michael Kramer, 2017)”. The opportunities in video via a device has a clear growth trajectory for both Verizon its wireless FIOS customers.

Moreover, Verizon FIOS has also added INSP TV to gain more audience in family-entertainment program and set “premier destination for those looking for positive content” with American spirit. It provides the channel 286 (SD) and channel 786 (HD) for more compelling entertainment business (Indian Land, 2017).

This year, every single NFL game is streamed live and we can get fast and no data cost watching experience through NFL Mobile App using Verizon wireless account. So as cable on mobile more and more convenient with no extra cost, will you buy it?

Reference

Indian Land (Jun 28th, 2017). “INSP HD is Now Available on Verizon Fios”. Multichannel News. http://www.multichannel.com/prfeed/insp-hd-now-available-verizon-fios/413779

Jessica Smith (September 5th, 2017). “Here’s what Verizon subscribers say they would switch for”. Business Insider. IMAGE. http://www.businessinsider.com/verizon-subscribers-switching-2017-9

John R Hall (Feb 22rd, 2017). “supply chain distribution”. Business.com. https://www.business.com/articles/supply-chain-distribution/

Kushnick, Bruce (May 19, 2012). “The Great Verizon Fios Ripoff”The Huffington Post. http://www.huffingtonpost.com/bruce-kushnick/the-great-verizon-fios-ripoff_b_1529287.html

Mari Silbey (Mar 1st, 2017). “This Is the New Fios TV From Verizon”. Light Reading. http://www.lightreading.com/video/ip-video/this-is-the-new-fios-tv-from-verizon/d/d-id/730711

Michael Kramer (Sep 14th, 2017). “Here’s Why Verizon Buying Netflix Would Make Sense”. Inverstopedia. http://www.investopedia.com/news/heres-why-verizon-buying-netflix-would-make-sense/

“Verizon Fios Overview and Coverage”. broadbandnow.com.https://broadbandnow.com/Verizon-FiOS

“Go90 FAQs”. https://www.verizonwireless.com/support/go90-faqs/

“Cable & Satellite TV Providers”. Consumeraffairs.com. https://www.consumeraffairs.com/cable_tv/cable.htm#view_more

“Fiber to the Premises (FTTP)”. zen.com. https://www.zen.co.uk/yourhome/superfast-fibre-broadband-packages/fibre-to-the-premises/

Sascha Segan (September 7, 2017). “Comcast Xfinity Is Fastest US ISP, Ookla Says”.PC Reviews. IMAGE.  https://www.pcmag.com/news/355976/comcast-xfinity-is-fastest-us-isp-ookla-says

Scott Moritz (Apr 18th, 2017). “Verizon’s CEO Is Open to Deal Talks, From Comcast to Disney”. Bloomberg Markets. https://www.bloomberg.com/news/articles/2017-04-18/verizon-s-ceo-is-open-to-deal-talks-from-comcast-to-disney

Sean Buckley (Jan 24th, 2017). “Verizon adds 68K FiOS internet subs in Q4, but DSL losses take toll on overall broadband base”. Fierce Telecom. http://www.fiercetelecom.com/telecom/verizon-adds-68k-fios-internet-subs-q4-but-dsl-losses-take-toll-overall-broadband-base

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