According to a new report, Verizon has postponed the launch of its own live TV internet service, as the company is considering its option, and may partner up with someone instead. Verizon's Chief Financial Officer (CFO), said at a JPMorgan conference in Boston, that the company is exploring its options, as it's not sure whether to offer its very own OTT video product. Now, Google's YouTube TV may be a possible partner for Verizon, even though it was not named by Mr. Ellis or anything of the sort.
Now, a JPMorgan analyst, Philip Cusick, added some more fuel to the fire, he said that Verizon doesn't plan to build its own full OTT linear video offer, but will, instead, partner up with an existing linear OTT player bundled with the fixed broadband product. He also added that the company will make that announcement on May 21, so we'll know everything by then, and it's less than a week away. Why May 21, you may wonder? Well, Verizon is scheduled to a meeting with sell-side analysts on that day, in order to update its plans in wireless and digital media, as Verizon has plans to bundle video-streaming services with its 5G wireless services. As many of you probably already know, Verizon had acquired both AOL and Yahoo a while back, and their intellectual property is now grouped in a new unit called Oath. As part of those purchases, Verizon got access to stream various sporting events, including those from the National Football League (NFL) and National Basketball League (NBA), not to mention that it also acquired various entertainment assets and so on, so it may be a viable partner to an existing linear OTT service.
So, why YouTube TV, why not some other service, you may wonder? Well, it makes the most sense, that's all. YouTube TV seems to be losing money, according to a Bernstein Research analyst Todd Jeunger's recent note to clients, so this partnership may be beneficial for both sides. AT&T has DirecTV NOW, Dish Network has Sling, while Hulu is owned by Walt Disney, 21st Century Fox, and Comcast, so YouTube TV makes the most sense, unless some other service surfaces in the meantime.