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Verizon Backpedals on Go90

Mari Silbey
5/24/2016

After a period of go, go, go, Verizon is now reining in the corporate rhetoric around its Go90 mobile video venture.

CEO Lowell McAdam worked to temper expectations for Go90 at the recent J.P. Morgan Global Technology, Media and Telecom Conference by acknowledging that the service may have been "a little bit overhyped." And he explained that internally, the telco is taking a measured approach to the over-the-top service.

"I think we had always internally viewed Go90 as what we call patient money inside the business that we knew, because it wasn't our core competency, we knew we were going to have to build slowly in this area," said McAdam.

However, if Go90 was meant to be a slow build, Verizon Communications Inc. (NYSE: VZ) did a poor job of communicating that strategy publicly. Instead of introducing the service as simply an add-on feature for mobile customers, Verizon made Go90 the centerpiece of its video product portfolio. And in one memorable appearance, the director of FiOS TV Maitreyi Krishnaswamy talked up the merits of the Go90 OTT service while also proudly announcing that she'd already cut the television cord. It was a strange pronouncement from the leader of Verizon's traditional video business. (See FiOS TV Director Cuts the Cord.)


Want to know more about pay-TV market trends? Check out our dedicated video services content channel here on Light Reading.


Verizon has also repeatedly thrown resources at Go90. Since buying the OnCue assets from Intel to power its mobile service back in 2014, Verizon has gone on to acquire AOL (which is valuable for far more than just its media properties) and invest in content companies like AwesomenessTV and Complex Media. Verizon also recently formed a joint venture with Hearst to further develop digital video programming. (See Verizon Closes AOL, Hints at Summer Launch and Verizon, Hearst Launch JV for Digital Content.)

The telco has insisted in the past that it doesn't want to be a content company, but its actions suggest otherwise.

Meanwhile, for as much as Verizon has hyped Go90, it hasn't been able to back up the happy talk with evidence of market success. In the company's most recent earnings call, CFO Fran Shammo said that Verizon is "encouraged" by early consumer response to Go90, but he declined to give further details. (See Verizon on Video: It's All About the Kids.)

McAdam went on at the J.P Morgan conference to say that, "We're going to continue to pursue it, but our expectations are realistic."

That lukewarm attitude isn't likely to inspire confidence in Go90's future. Which begs the question, how much of a future does Go90 have?

— Mari Silbey, Senior Editor, Cable/Video, Light Reading

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wanlord
wanlord
1/24/2017 | 5:21:19 PM
and it finally happened
writing on the wall. one more chance for this to survive and then it's gone...

 

http://variety.com/2017/digital/news/verizon-go90-layoffs-1201967433/
KBode
KBode
6/7/2016 | 1:46:31 PM
Re: Whoa!
AT&T may be doing the same. Reports today hinted at a FOURTH streaming video platoform, this one focused on gaming and anime. Going to be a lot of bloodshed on this front as companies not good at disrupting try to disrupt -- somehow without cannabalizing existing pay TV subscribers. 
kq4ym
kq4ym
6/7/2016 | 1:09:44 PM
Re: Whoa!
Verizon might not be the only one to do some back peddling on video. But, who knows, maybe the Verizon hype was really just a trial balloon to see who would jump aboard. It's going to be a real contest among the players to see what's going to fly or not.
KBode
KBode
5/27/2016 | 8:08:41 AM
Re: Whoa!
I like your sarcasm. :)

Are you saying it takes more to become the next Millennial YouTube sensation than just some neon advertising banners? 
wanlord
wanlord
5/26/2016 | 8:29:05 PM
Whoa!
Whoa! How can this be? I mean come on, they made their office feel like a garage startup. They had "whiteboards everywhere" and "unfinished floors"! They even (unbelievable in the industry), "set a launch date".  Thats all they needed, what could go wrong?

http://www.fiercewireless.com/special-reports/inside-creation-verizons-go90
KBode
KBode
5/25/2016 | 3:46:31 PM
Re: Surprised...
That would make more sense, but I still think that disruption and innovation is not Verizon's strong suit after a generation of regulatory capture. (Failed app store, failed news operation in Sugarstring, failed JV with Red Box). I can understand the back end ad interest; I can understand developing a real OTT streaming platform; but the quest to compete with YouTube and other established platforms for Millennials always struck me as a dead end. 
msilbey
msilbey
5/25/2016 | 12:21:29 PM
Re: Surprised...
Interestingly, I heard a rumor (entirely unconfirmed) that Verizon is planning to move away from Go90 as a showpiece consumer product, and instead use it as a proof-of-concept for the company's video platform and delivery services. In other words, turn it into almost into a model for Verizon white-label services.

Makes sense to me. That's where Verizon's strength lies.
KBode
KBode
5/25/2016 | 10:11:54 AM
Surprised...
I was pretty surprised to see McAdam pooh pooh his own incredibly-hyped service. Suggests that Verizon's quest to be a sexy new media brand isn't going so well, which is something everybody BUT Verizon saw coming from about forty miles away.
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