Verizon Communications (NYSE: VZ) isn't ruling out the possibility of someday offering its users an over the top (OTT) online video service, but right now it will focus on increasing its FiOS TV service customer base.
Fran Shammo, Verizon's CFO, said in a Reuters' article that its plan "is to expand our penetration for FiOS right now."
What's prompting questions about Verizon and other pay TV providers about their OTT video plans is how they will respond to the emergence of online video sites like Netflix's (Nasdaq: NFLX) instant video services.
To differentiate its video offerings, Verizon will make its content mobile by allowing customers to access it from other devices like smart phones and tablet computers.
"That's the bigger issue on our minds, to put our content on mobile devices," he said.
Despite the ongoing emergence of Netflix and other online video services like Ivi, Verizon's TV strategy appears to be paying off. In Q1 2011, Verizon reported that it added 192,000 net FiOS TV subscribers, bringing it to 4.3 million total FiOS Internet connections and 3.7 million total FiOS TV connections.
For more:
- Reuters has this article
Related articles:
Verizon's Q1 wireline gets EBITDA boost from FiOS and enterprise services, but revenue misses forecasts
Wireline in the first quarter of 2011
Verizon's Q4 revenue slips slightly while broadband, business revenue grow
Verizon's Q3 profit drops while FiOS subscribership grows