Light Reading
In his TelcoTV keynote, Verizon's Robert Mudge says the service will play a key role in the company's 'borderless lifestyle' strategy

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
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?

Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
From 4G to 5G: Alcatel-Lucent's Dave Geary

11|25|14   |   09:09   |   (1) comment


Dave Geary, President of Wireless at Alcatel-Lucent, talks about the evolution of the 4G market, small cells, partnerships, 5G and the IoT.
LRTV Huawei Video Resource Center
Building a Secure Telefonica Network With Huawei's High-End Firewall

11|24|14   |   4:37   |   (0) comments


Andrew Davies, IP architect of the Telefonica, a leading digital communications company, discusses the Huawei security gateway solution and putting the solution into the testbed.
LRTV Huawei Video Resource Center
Huawei Partners with Spirent to Verify CE12816's 10GE Port & TRILL Networking Capabilities

11|24|14   |   2:50   |   (0) comments


Spirent Communications is the world's leading supplier for telecom testing appliances and solutions. Spirent has been in a close partnership with Huawei for a long time.
LRTV Huawei Video Resource Center
Saudi Airlines & Its ICT Transformation

11|24|14   |   2:07   |   (0) comments


In this video, Saudi Airlines discusses its network problems and how Huawei's Agile Network is its all-in-one solution.
LRTV Huawei Video Resource Center
Huawei's Agile Switch Benefiting Saudi Arabia's Yamamah Hospital

11|24|14   |   2:40   |   (0) comments


Saudi Arabia's Yamamah Hospital speaks about how Huawei's Agile Switch has improved the medical service's network infrastructure.
LRTV Huawei Video Resource Center
FanPlay & Huawei Build a Wireless Agile Smart Stadium

11|24|14   |   2:13   |   (0) comments


FanPlay is a cloud-based white label service, which is effectively a football fan engagement platform underpinned by mobile payment technology.
LRTV Huawei Video Resource Center
Building an Agile Stadium

11|24|14   |   3:54   |   (0) comments


Stadiums may be thousands of tons of concrete and steel, but they now need to be agile. Being at the stadium may not be as alluring as it once was. Sports franchises and stadium operators discuss how to get fans back.
LRTV Huawei Video Resource Center
Huawei Helps ChinaCache Tackle Challenges in the Internet Industry

11|24|14   |   3:09   |   (0) comments


ChinaCache is China's largest content distribution network supplier. Huawei's CE12800 has provided ChinaCache with very strong support in its establishment of an infrastructure network.
LRTV Huawei Video Resource Center
Cefinity on Managed Security Services & Next-Generation Firewall

11|24|14   |   7:05   |   (0) comments


Cefinity is a cloud management service provider in Southeast Asia. Ivan Zhang, CEO of the company, discusses the implementation of security service management in the cloud era.
LRTV Huawei Video Resource Center
Huawei's Agile Gateway in the Eyes of Cefinity

11|24|14   |   2:11   |   (0) comments


Cefinity is a managed service provider for enterprise networks. The company currently uses Huawei's AR series routers for the most complete range of functions. CEO Ivan Zhang speaks about the advantages of the AR series routers.
LRTV Huawei Video Resource Center
CTO of Bus-Online Talks About Huawei's Agile Gateway

11|24|14   |   2:53   |   (0) comments


Bus-Online covers around 100 million users everyday. In addition to providing mobile TV, and advertising services to the public, Bus-Online has also entered the field of mobile Internet.
LRTV Huawei Video Resource Center
Amsterdam ArenA as an Agile Campus

11|24|14   |   3:31   |   (0) comments


The Amsterdam ArenA, home of the Ajax soccer team, can be a crowded space. ArenA has partnered with Huawei to work on bringing ample bandwidth to 53,000 people at the same time.
Upcoming Live Events
December 2, 2014, New York City
December 3, 2014, New York City
December 8-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
April 14, 2015, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
Irish Telecom outlines the rise of VoIP technology, including its adoption within businesses and their perception of its quality.
Hot Topics
$38.3M: Ain't That a Kik in the SMS
Sarah Reedy, Senior Editor, 11/20/2014
Do You Have a 2020 Vision?
Dennis Mendyk, Vice President of Research, Heavy Reading, 11/21/2014
$35B+ Spectrum Auction Dings Verizon, Shines Dish
Dan Jones, Mobile Editor, 11/24/2014
Operators Should Block Ads to Get Their Cut, Startup Says
Sarah Reedy, Senior Editor, 11/24/2014
The New Wave of IP + Optical Integration
Ray Le Maistre, Editor-in-chief, 11/21/2014
Like Us on Facebook
Twitter Feed