Verizon Secures Deals for TV Channels
Verizon revealed that it has entered into a long-term relationship with A&E Television Networks to broadcast A&E's programming to subscribers of its upcoming FiOS TV service. Under its agreement with A&E Verizon will broadcast content from The History Channel, The Biography Channel, History International, Military History Channel, and Crime & Investigation Network.
Verizon is escalating its foray into the television market, securing programming distribution agreements with some of the largest content providers in the entertainment industry, including Discovery Networks, NBC Universal Cable and Starz Entertainment Group. The company claims that it is giving customers a competitive alternative to cable TV.
"We are pleased to add A&E to our list of content partners," said Terry Denson, vice president of programming and marketing for Verizon FiOS TV. "A&E's complement of programming will satisfy our future customers' desire for diverse content related to people, places, and events of current and past historical significance."
FiOS TV will carry hundreds of channels with high-definition programming and premium features including video-on-demand, music channels and a program guide. Microsoft TV was chosen by Verizon to be the software platform for FiOS TV.
Verizon is entering the market for television service in response to a multi-pronged incursion into its core voice and data businesses by cable operators, which have introduced services such as Voice-over-IP (VoIP) Internet telephony. The moves have triggered falling prices in business markets and subsequently, a decline in revenue for "Baby Bells" like Verizon.
Laying the groundwork for its upcoming broadband services, Verizon is replacing its circuit-switched copper-based network with an IP-based fiber to premises deployment. Dubbed FiOS, the network will haul voice, video and data services throughout Verizon's zone of coverage.
FiOS customers will receive MSN Premium content, access to Verizon's Broadband Beat entertainment portal and experience download speeds exceeding 15 Mbits per second.
FiOS is already available to customers in some markets.
Infrastructure costs aside, Verizon also faces political challenges before it can rollout FiOS TV. Current local regulations require Verizon to establish another franchise covering video services. Verizon has challenged broadcasters to support changing those regulations and has lobbied Congress to allow the deployment of its network.