Verizon FiOS TV Adds Time Warner - Analyst Blog

Verizon (VZ) has announced a major enhancement to its FiOS TV service by adding the network services of media giant Time Warner Inc. (TWX). The US wireless ace has reportedly signed a pact with Time Warner under which the latter’s popular online TV content will be featured on FiOS TV starting June 2010. 

Per the agreement, FiOS TV subscribers will have unlimited online access to a variety of programming from Time Warner’s Turner networks TNT and TBS at no added cost. Plans are in place to bring the same content to mobile devices soon. The programs will be aired in high-definition (HD) video quality. 

Verizon offers FiOS TV services by leveraging its high-speed fiber-to-the-premises (FTTP) network. The carrier launched multiple enhancements for the service in 2009, including new widgets and applications such as Facebook, Twitter, ESPN and Internet video services, through its new store “The Widget Bazaar". 

Verizon remains committed to expanding program content on FiOS TV. It added Viacom promoted movie channel EPIX in October 2009 to offer multi-channel entertainment services. Moreover, the carrier has launched HBO’s new web site “HBO GO" in February 2010. Efforts are underway to add other major networks like CBS Corp. (CBS), FOX News, MTV and Hallmark Channel. FiOS TV currently offers 140 HD channels and 2,800 HD movie titles. 

Verizon remains significantly challenged by the intense competition from cable operators who are aggressively promoting triple-play (voice, Internet and video) services. Moreover, FiOS TV competes head-to-head with AT&T’s (T) U-verse TV service. As such, Verizon is aiming at countering competition from cable, satellite TV and other competing services by augmenting its FiOS TV offering to include premium content and differentiated features.
 
Expansion of FiOS services remains an integral part of Verizon’s long-term growth strategy. Increased market penetration of the FiOS footprint and the roll-out of the 4G Long-Term Evolution (LTE) service (planned in fourth-quarter 2010) are expected to strengthen Verizon’s market position against its major rivals.
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