Verizon Boosts FiOS TV Service - Analyst Blog

Verizon (VZ) has announced enhancements to its FiOS TV service by adding photo sharing functionality and expanded Video-on-Demand (“VOD") content. The company’s FiOS TV customers can now share and view millions of photos on their TV. This is enabled by services such as Media Manager (enables media sharing between PC and TV), Kodak Gallery Widget (provides registered users instant access to online digital photo gallery) and Facebook Widget (users can view photos from their Facebook account). 

Besides photo sharing, Verizon has also expanded its industry leading high-definition (HD) VOD services with the addition of HDNet and HDNet Movies. HDNet is a leader in offering HD TV services in the US. Verizon has now joined DirecTV (DTV) and Dish Network (DISH) in offering HDNet VOD content. The new HD services are available to all existing FiOS TV customers without any extra charge. 

Customers can access more than 20 hours of HD programming from HDNet and more than 25 HDNet movie titles per month. Verizon offers the FiOS TV and FiOS Internet services leveraging its high-speed fiber-to-the-premises network. Verizon expanded its FiOS TV offering in Jul 2009, by adding Facebook, Twitter, ESPN and Internet video services through the launch of a new store “The Widget Bazaar". 

FiOS TV currently has 127 HD channels and offers more than 2,400 HD movie titles. Verizon remains significantly challenged by the intense competition from cable TV operators who are aggressively promoting triple-play (voice, Internet and video) offerings to consumers. FiOS TV also competes with AT&T (T) U-verse TV service. 

Verizon is aiming to counter competition from cable, satellite TV and other competing services by augmenting its FiOS TV offering to include differentiated features. Expansion of its FiOS services remains an integral part of Verizon’s long-term growth strategy. The company continues to broaden market penetration of its FiOS TV services, which currently average roughly 25% across all markets. 

Subscriber accretion also remains healthy for FiOS TV as reflected by approximately 790,000 new additions registered in the first nine months of 2009. Increased market penetration of the FiOS network and the ongoing fourth-generation (4G) wireless network upgrade initiatives are expected to strengthen Verizon’s market position against its key rivals AT&T and Sprint Nextel (S).
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