& cplSiteName &

Verizon/Redbox Combo Set for Q4 Breakout

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
10/24/2012
50%
50%

LAS VEGAS -- Telco TV 2012 -- The streaming and DVD rental subscription service being developed by Verizon Communications Inc. (NYSE: VZ) and Redbox Automated Retail LLC is in the beta phase, and the companies are on track to launch it commercially before the end of the year, Verizon President of Consumer and Mass Business Robert Mudge said during his keynote here Wednesday.

"We will be in the market in the fourth quarter. Quite frankly, this has been a heavy lift," Mudge said.

The coming service -– called Redbox Instant by Verizon –- represents a "prudent step with over-the-top," Mudge said. It will be a standalone subscription offered outside the FiOS sphere, so it will be available to any U.S. consumer with a broadband connection, making it a direct competitor to Netflix Inc. (Nasdaq: NFLX). (See Verizon & Redbox Boot Up Web Video Service and Verizon & Redbox Target Netflix .)

The winner, he said will be "the provider that can give the consumer any of those [video] choices at a reasonable price." Verizon and Redbox, by the way, have not revealed what they'll be charging.

The Redbox deal ties into an overarching strategy around what Verizon calls the borderless lifestyle (the main subject of Mudge's talk) that will enable access all apps and services to all devices, at home or on the go, via a mix of wired and wireless connectivity.

Mudge shared the results of new consumer research (something Verizon calls the FiOS Innovation Index) that found that 39 percent of U.S. adult consumers already fall into this "borderless" demographic. And it appears to be a highly sought-after group for advertisers, with 48 percent of the group making more than $75,000 a year and 51 percent being college graduates. Those figures were based on a Verizon-commissioned survey of 2,292 adults conducted Sept. 7-12.

That all means that "establishing a strategy for converged innovation for products and services is imperative" for service providers, Mudge said. It's become so important, he pointed out, that Verizon Wireless and its cable partners have created an innovation joint venture that will develop blended apps and services that can be delivered on wired and wireless networks. (See Verizon Wireless: Cable’s New BFF.)

But the demands on the network to support the notion of a borderless lifestyle "will continue to be staggering," Mudge said.

That will, of course, put more stress on wireless networks, but the wired home networks will also be called on to carry a bigger load. Verizon launched two high-end Quantum FiOS tiers (300Mbit/s and 150Mbit/s) in June, and the company has already been getting some consumer interest in them, indicating that they're more than just flashy marketing ploys. Mudge said he was pleasantly surprised to learn that 7 percent of the subscribers calling in were asking about the 150Mbit/s Quantum tier. (See FiOS Speeds & Prices Take a Quantum Leap .)

— Jeff Baumgartner, Site Editor, Light Reading Cable



(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 5:18:39 PM
re: Verizon/Redbox Combo Set for Q4 Breakout


that would offer a more meaningful metric... you have to wonder how many ask and then get sticker shock on the price.  But VZ's high end tiers are still less expensive than the similar tiers Comcast is trying out in some FiOS markets. JB

JohnVoda
50%
50%
JohnVoda,
User Rank: Light Beer
12/5/2012 | 5:18:39 PM
re: Verizon/Redbox Combo Set for Q4 Breakout


It is interesting that "7 percent of the subscribers calling in were asking about the 150Mbit/s Quantum tier" but I'd be much more interested to learn what percentage are willing to pay for the speed.  Is the target market heavy gamers and online movie viewers?  How large is that?

From The Founder
Download our complete guide to de-risking NFV deployment in 2016, including:
  • An eight-step strategy to deploying NFV safely, based on input from the companies that have already started virtualizing their production networks.
  • Interviews with leading executives at Colt, AT&T, Deutsche Telekom, Cisco, Nokia, ZTE, Ericsson and Heavy Reading.
  • Flash Poll
    Live Streaming Video
    Prepping for the Future: Upskill U Explained
    During this short kick-off video, Doug Webster, Vice President of Service Provider Marketing, Cisco, and Light Reading’s CEO & Founder Steve Saunders give an overview of Upskill U.
    Between the CEOs
    CEO Chat With SCTE CEO

    5|3|16   |     |   (0) comments


    Mark Dzuban, President and CEO of SCTE, sits down with Steve Saunders in Light Reading's New York office to discuss the enrollment of Energy 2020: its great mission to save the planet, economic benefits and challenges.
    LRTV Custom TV
    Deluxe's Unified Delivery Solution

    5|3|16   |     |   (0) comments


    Join Alan Breznick of Light Reading and visit the Deluxe booth at NAB! Here you'll find Deluxe's Unified Delivery Solution, OTT video, virtual reality, HDR, 4K and much more!
    LRTV Interviews
    Verizon Puts Gray Boxes in the Shade

    5|2|16   |   04:33   |   (0) comments


    When it comes to the white box trend, "gray" boxes, which have a slight proprietary twist, don't give service providers and end users the advantages they're seeking, according to Verizon's Vice President of Product and New Business Innovation Shawn Hakl.
    LRTV Custom TV
    Dealing With a Disrupted Video Market

    5|2|16   |     |   (0) comments


    Ericsson's Simon Frost discusses how traditional pay-TV providers can cope with the big changes wrought by the rise of OTT video and IP technology.
    LRTV Custom TV
    The VNF Responsibility of Red Hat

    5|2|16   |     |   (0) comments


    At MWC, Caroline Chappell of Heavy Reading visits the Red Hat booth and sits down with Chris Wright to talk about the responsibility the VNF needs to take on in order to ensure the operators get the carrier-grade performance they expect for their network.
    LRTV Interviews
    AT&T Expert on the Key Pillars of UC

    4|29|16   |   03:58   |   (0) comments


    Vishy Gopalakrishnan, AVP of product marketing at AT&T, talks about the three developments that are making unified communications and collaboration secure and reliable for enterprise users.
    LRTV Documentaries
    LRTV Report: Mobile Core Innovation

    4|28|16   |   25:32   |   (0) comments


    Hear from multiple industry experts from Deutsche Telekom, SK Telecom, Heavy Reading, Huawei, Cisco, Ericsson, Nokia, NEC and many more about developments in the mobile core as operators virtualize their IMS and evolved packet core systems and prepare for a 5G world.
    LRTV Huawei Video Resource Center
    NFV World Congress Highlight

    4|26|16   |     |   (0) comments


    The highlight of the NFV World Congress contains exciting telecom news. Join us for an inside look at Huawei's ICT 2020 plan and its latest collaboration with industry leaders.
    LRTV Interviews
    Unified Comms Finds Its Voice

    4|25|16   |   03:44   |   (0) comments


    Peter Quinlan, VP of UCC Product Management at Tata Communications, talks about the evolution of the unified communications and collaboration services sector and how voice is now a big part of current developments.
    LRTV Documentaries
    So... What Do We Do Now?

    4|25|16   |   03:24   |   (0) comments


    After a long hiatus, Max Dingman, the CEO of a GeeGhiz, returns for a motivational board room pep talk.
    LRTV Documentaries
    NAB 2016 Highlights

    4|21|16   |     |   (0) comments


    Light Reading's Cable/Video Practice Leader Alan Breznick climbs down from the slots to tell us about the latest news in broadcast technology at NAB 2016 in Las Vegas.
    Between the CEOs
    CEO Chat: Deepfield's Craig Labovitz

    4|21|16   |     |   (0) comments


    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Upcoming Live Events
    May 23, 2016, Austin, TX
    May 23, 2016, Austin Convention Center
    May 24-25, 2016, Austin Convention Center, Austin, TX
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    December 6-8, 2016,
    June 16-18, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    Ultra-Broadband Summit, Hong Kong
    Iain Morris, News Editor, 4/27/2016
    Amazon AWS Reports $2.6B Quarterly Revenue, Up a Colossal 64%
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/28/2016
    WiCipedia: Woman Cards & Bitch Switches
    Sarah Thomas, Director, Women in Comms, 4/29/2016
    FCC Poised to Re-Regulate Wholesale Access
    Carol Wilson, Editor-at-large, 4/28/2016
    LoRa Alliance Defends Tech Against Sigfox Slur
    Iain Morris, News Editor, 4/28/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    Mark Dzuban, President and CEO of SCTE, sits down with Steve Saunders in Light Reading's New York office to discuss the enrollment of Energy 2020: its great mission to save the planet, economic benefits and challenges.
    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Animals with Phones
    Sloth Mail Click Here
    Sloth mail -- somehow even slower than snail mail.
    Live Digital Audio

    Of all the tech companies in the Valley, Intel has made the most aggressive commitment to building a diverse and inclusive workplace culture. It's doing so by taking concrete, measurable steps, making a large financial investment and through a commitment to complete transparency about its progress. In this radio show, WiC Director Sarah Thomas will be joined by Shlomit Weiss, Intel's Vice President, Data Center Group, and General Manager of Networking Engineering, who will share with us why Intel is tackling this huge challenge, how and to what effect. She will also discuss her unique experiences leading development of Client SOC development in the past and today leading development of all of the chipmaker's silicon hardware for networking IPs and discrete devices and managing a team of 600 engineers across Israel, Europe and the US.