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Verizon Planning Internet Video Service for Non-FiOS TV Markets?
Thinking Outside of the Cable TV Walled Garden
by Karl Bode Monday 23-May-2011 tags: Video · business · alternatives · bandwidth
Last month a piece over at Advertising Age exploring "over the top" (OTT) video projects noted that Verizon was among several companies (like Microsoft) considering Internet video services. The plan Verizon's tinkering with, apparently, is to build a robust enough content infrastructure to be able to deliver FiOS TV or other Internet video content to customers in not only markets not served by FiOS TV, but everywhere. Back in November we noted that Verizon had launched a new Flex View Video On Demand service that delivers FiOS TV content to smartphone or PC. GigaOM notes that Verizon appears to be taking this platform one step further -- to non FiOS customers:

The new service would have all the same features as its existing Flex View VOD offering, including access on PCs and some mobile devices. But Verizon is looking to extend that even further, to connected devices like Roku broadband set-top boxes. Zafar showed off a channel today that could allow Verizon FiOS customers — and even non-customers — to access the company’s VOD service on Roku devices.

So far, telcoTV and cable companies have worked very hard to use their "TV Everywhere" Internet video services as a way to prevent cord cutters, focusing on offering such services only to users who subscribe to cable TV. This potential expansion of Flex View suggests the folks at Verizon are wisely thinking outside of the traditional walled garden. But can a traditional telco (not really known for innovation, despite telco executive desire to believe otherwise) out-innovate hungrier over the top video companies like Netflix? Verizon has the money to acquire more innovative upstarts and licensing rights, as well as an ever-increasing dominance over the entire transit route -- so this OTT push is something to keep an eye on...

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ArrayList
Premium
join:2005-03-19
Evanston, IL

good idea

but my cap would stop it dead.

Camelot One
Premium,MVM
join:2001-11-21
Greenwood, IN
kudos:1

Re: good idea

said by ArrayList:

but my cap would stop it dead.

Exactly. You'd need Verizon Fios internet for this to work.
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k7t867fcgh

@swbell.net

Re: good idea

said by Camelot One:

said by ArrayList:

but my cap would stop it dead.

Exactly. You'd need Verizon Fios internet for this to work.

Or, maybe a Google network in KC!

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:7
Will Fontier FiOS work instead?

joncellini

join:2001-04-19
Beaverton, OR

Re: good idea

Be kinda ironic to go back to VZ after being dumbed by them on Frontier ... granted at least VZ was interested in providing video service.

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:7

Re: good idea

There would be a bit of irony it. But in the end, it's all about the money for me. If Frontier+Verizon TV is cheaper than Comcast, then I'll switch (presuming the service works).

r81984
Fair and Balanced
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Katy, TX
Reviews:
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said by ArrayList:

but my cap would stop it dead.

Maybe Verizon could use their lobbying power to pass net neutrality so no ISP would be allowed to cap.
--
Your behavior is inconsistent with your desire to be treated like everyone else.
Skippy25

join:2000-09-13
Hazelwood, MO

Could Get Interesting....

This could be the start of ala carte pull of content from these "providers". We could have a future in that we get NBC content from Comcast and XXX from Verizon or XXX from ATT.

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

Verizon success will depend on content companies

Whether Verizon ever really gets serious over this will depend on whatever negotiations they have with content companies. Will content companies want to rein in Netflix somehow by cutting deals with Verizon, Comcast, TW, etc. The content companies may want to cut out the obnoxious and whining to Congress Netflix and do these video streaming deals with the traditional TV providers that still provide them with tons of earnings from the old style business plans.
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flbas1

join:2010-02-03
Fort Lauderdale, FL

Re: Verizon success will depend on content companies

this will open a new set of problems: is comcast going to charge VZW the same way they charged Level3? And, (already stated) - Netflix content and caps.

How can we get into the 21st century with 20th century caps?

r81984
Fair and Balanced
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Re: Verizon success will depend on content companies

said by flbas1:

this will open a new set of problems: is comcast going to charge VZW the same way they charged Level3? And, (already stated) - Netflix content and caps.

How can we get into the 21st century with 20th century caps?

That make no sense.
Verizon is their own backbone, they have paring agreements with other backbones like Level 3 or ATT.
Comcast pays for their internet backbone and their customers pay for their internet connections. Verizon does not buy their connection from Comcast.

So how could omcast charge Verizon??? Verizon is not using any backbone owned by comcast for them to get charged.

If backbones like level3 do not have paring agreements with verizon or atts backbone they are essentially blocking the internet.
If you have a backbone war then the internet will get much smaller.

ISPs already restrict with caps and now you think they will restrict their backbones? At what point does an ISP become a 'restricted' ISP since they are no longer offering a connection to the internet?
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Your behavior is inconsistent with your desire to be treated like everyone else.
talz13

join:2006-03-15
Avon, OH

Re: Verizon success will depend on content companies

Comcast will probably funnel the FiOS TV through the overcrowded backbone connection like they do with netflix, unless VZ gives them money to get placed on the "good" pipeline...

Smith6612
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join:2008-02-01
North Tonawanda, NY
kudos:22
Reviews:
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Perhaps this is related?

I don't know how recent this service had come out, but a look around the Verizon Business website revealed this piece of information:

»www.verizonbusiness.com/solutions/vds/

Almost seems as though they are looking to compete directly with Akamai, but I'm assuming this is their actual platform that they are building up for this TV Everywhere service. Seems to be under the name "Verizon Digital Media Services."

Karl Bode
News Guy
join:2000-03-02
kudos:33

Re: Perhaps this is related?

Yes, they're a telco. The executive mindset is that they, by rights descended from on high, should control every step of the transit and every bit of content transmitted wherever possible.
elray

join:2000-12-16
Santa Monica, CA

Re: Perhaps this is related?

said by Karl Bode:

Yes, they're a telco. The executive mindset is that they, by rights descended from on high, should control every step of the transit and every bit of content transmitted wherever possible.

More like, by controlling every step of the transit, wherever possible, including bypassing Akamai, they have not only quality control, but also predictable costs - so they some margin left over after they've negotiated for content, as well as a cap waiver for their subscribers.

Further, by keeping delivery off the big-I internet, they will avoid the whole "neutrality" nonsense.

The "telco mindset" used to deliver a better product than the "cable mindset". Today, its a push. But I have yet to see anyone complain about having FIOS available, even at the premium price, and VZW continues to dominate the postpaid cellular market in customer satisfaction, even with their never-ending billing issues.

They must be doing something right. If they're willing to invest the big bucks to properly build distribution for OTT, obtain a decent (i.e. non-Moto) STB, pony up to negotiate effectively for content (unlike Google, Hulu, et al), they could very well have a winner.

Someone has to cast the first stone to make IPTV available competitively. Not a little pipsqueak like Ivy, but a major player ('greedy' for you anti-capitalists) who has something to gain.

I'd rather it start with Netflix / Roku / Amazon, but they seem to have stalled. A TelcoTV entity can lead the way and demonstrate how to retire the "cap" debate.
patcat88

join:2002-04-05
Jamaica, NY
kudos:1

Re: Perhaps this is related?

Remember that MCI/Verizon is the largest backbone in the world. They dont pay ANYONE for a connection, everyone pays them.
majortom1029

join:2006-10-19
Lindenhurst, NY
kudos:1

Yeah right

This would not work because cable companies would BLOCK it on their network.

Hottop

@verizon.net

Re: Yeah right

said by majortom1029:

This would not work because cable companies would BLOCK it on their network.

That would be illegal Einstein. Just like Verizon cannot block skype or vonage.

r81984
Fair and Balanced
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Katy, TX
Reviews:
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Re: Yeah right

It would not be illegal and that is the problem.
The government gave in to rich lobbyists and did not pass net neutrality laws.

We have no current way of stopping ISPs from blocking anything.
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DufiefData

join:2006-06-13
Gaithersburg, MD

Re: Yeah right

said by r81984:

It would not be illegal and that is the problem.
The government gave in to rich lobbyists and did not pass net neutrality laws.

We have no current way of stopping ISPs from blocking anything.

And any year now, they're going to start doing just that...

Majortom

@optonline.net
said by Hottop :

said by majortom1029:

This would not work because cable companies would BLOCK it on their network.

That would be illegal Einstein. Just like Verizon cannot block skype or vonage.

Before bashing know what your talking about . It would not be illegal to block it. No net neutrality law exists.

Vchat20
Landing is the REAL challenge
Premium
join:2003-09-16
Columbus, OH

Re: Yeah right

It wouldn't be illegal, but there WOULD be a huge backlash over it if they did and THEN it would likely get the net neutrality ball rolling in the right direction.

klipko

join:2006-06-28
Portland, OR

Humm...

I can see people in Frontier FiOS territories be interested in this...or is it just me.
bigred1324

join:2009-07-27
Fort Wayne, IN

Re: Humm...

nope, it's not just you, I'm really interested in this too. Hope to see it soon.

BHNtechXpert
BHN Staff
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join:2006-02-16
Saint Petersburg, FL
kudos:82

Before anyone gets all excited and everything...

This is Verizon we're talking about here. Verizon does nothing unless it benefits Verizon FIRST! Read between the lines and consider all things as this evolves before forming any opinions because it's highly unlikely that Verizon is doing this because they want to be nice and give you what you want...
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thecybernerd
Premium
join:2007-01-05
Great Falls, VA

4G LTE

I really see Verizon pushing a video solution over their 4G LTE network which can easily handle HD content. It will be interesting to see how they market it. I have heard rumors that they might bring the Fios branding over to their 4G LTE brand and kick off a new platform of some sort.
tjb122982

join:2009-09-22
Terre Haute, IN

Could my dream be coming true?

Could my dream of having a true OTT solution with live TV solution be coming true? I personally would love to see Verizon to develop live TV packages to be delievered either through 4G LTE or through a wired non-Verizon connection. I am sure that Time Warner would love that.
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
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LTE

Verizon will NOT be overlaying 100% of their footprint with FTTP (at least they're still buying fiber and keeping certain commitments). As it stands.. AT&T is renegging on commitments they made to get bell south stopping at 50-60% overlay with Uverse.. DSL! So do not expect much more from the telcos, except where it's in their interest to make more money on the cheap. LTE can give them that ability to reclaim those "LOST" markets quite cheaply. I doubt a video service over LTE would be part of an artificial cap. Besides, they probably have enough bandwidth to transmit almost EVERY channel simultaneously (instead of on-demand to each customer) to each node with room to spare for voice, & data services.

phil harvey

@sbcglobal.net

that's not quite how I saw it...

I was at the Verizon meeting that GigaOm wrote about and Verizon was clear that they were demonstrating what was possible, not giving any sort of guidance about what new services they might offer.

In fact, they've been pretty consistent about this because back in Nov., when Flex View launched, VZ did tout the cloud capability of Flex View and really saw it as a customer retention lever, not necessarily a Netflix killer or a way to reach FiOS into other (non-Verizon) markets.

»www.lightreading.com/phil
BiggA

join:2005-11-23
EARTH

Going to run...

...on the magical, unlimited, 100mbps bandwidth that exists in a parallel universe.
Lets Go

join:2005-03-05
Homer, NY

Need to drop Verizon to get Verizon

The irony here is that Verizon only offers 3 meg dsl here and doesn't seem to want to upgrade to anything else. So I would have to cancel Verizon service and go with Time Warner Cable internet service to get Verizon video service. My head hurts now.
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Selenia
I love Debian
Premium
join:2006-09-22
Lanesboro, MA
kudos:2

Re: Need to drop Verizon to get Verizon

Why is that? I use Netflix, Hulu, and more on my 3 meg(best I can get) DSL. While the ps3 streams don't do HD on Netflix at that speed, the Silverlight streams do. Use PlayOn and all of them are available to your TV, cell phone, and nix PCs.

Vchat20
Landing is the REAL challenge
Premium
join:2003-09-16
Columbus, OH

Re: Need to drop Verizon to get Verizon

said by Selenia:

Why is that? I use Netflix, Hulu, and more on my 3 meg(best I can get) DSL. While the ps3 streams don't do HD on Netflix at that speed, the Silverlight streams do. Use PlayOn and all of them are available to your TV, cell phone, and nix PCs.

The biggest problem is all of them other than PlayOn are pre-recorded so they have the different bitrate encodes done ahead of time. PlayOn you use your own hardware for transcoding and likely one stream at a time.

While the ability to do variable bitrate streaming depending on connection speed would be nice in this case, it means Verizon would need to have not just one encoder per channel but likely in the range of 4-6 for each bitrate they want to offer. ~150 channels x 4 and it starts getting expensive. And if they decide to base the internet offering around their FiOS VHO's that adds even more to the mix.

With that said I am sure Verizon will do it if they decide to go that route. For the main reason that, unlike traditional TV providers, internet bandwidth is not a constant. They can say 'Ok, you must have a minimum 10mbit connection' but that is not going to be a constant and there's always going to be some cutouts when the stream can't keep up. As it is, just about every video provider out there either has on-the-fly variable bitrates to combat this seamlessly or gives you an option of what bitrate to run.
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Selenia
I love Debian
Premium
join:2006-09-22
Lanesboro, MA
kudos:2

Re: Need to drop Verizon to get Verizon

I am reasonably sure Verizon would implement something like this, like most streaming services.

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