US mobile operator Verizon Communications has agreed to form a joint venture with media group Hearst to develop multiplatform digital video programmes aimed at the millennial market. The deal marks a further foray into content for Verizon, which is also considering a bid for Yahoo’s core internet business.
US mobile operator Verizon Communications (NYSE:VZ) has agreed to form a joint venture with media group Hearst to develop multiplatform digital video programmes aimed at the millennial market.
The JV, which will be known as Verizon Hearst Media Partners following the completion of Verizon’s investment, will use Verizon’s technology and Hearst’s digital video content and production capabilities to develop an initial two channels, the companies said in a statement. These will be distributed via Verizon’s ad-funded mobile video app go90, its AOL subsidiary and other platforms, as well as through third-party networks and licensors. Verizon did not specify how much it is investing in the JV and was not immediately available for comment.
The deal marks a further foray into content for Verizon, which paid US$4.4bn for AOL last May and launched go90 last October. The mobile operator is also considering a bid for Yahoo’s (NASDAQ:YHOO) core internet business.
Brian Angiolet (pictured), Verizon’s senior vice president of consumer product and marketing, described the JV, which will be based in New York City, as “the next step in the development of our media strategy, which is focused on disruption that is occurring in digital media, content distribution and ad tech, and involves building a video platform for digitisation, formatting, delivery and commerce”.
The initial two channels will be called RatedRed.com and Seriously.TV. The former will be aimed at “millennials from the heartland” with news, documentaries and scripted and non-scripted series on topics including music, food, the outdoors, military matters, politics and religion. The latter will provide “comedic news updates”. Both channels are expected to be launched in time for the NewFronts, an annual series of events for advertisers and media buyers interested in partnerships between brands and programming.
Neeraj Khemlani, co-president of Hearst Entertainment & Syndication, commented: “It’s the dawn of a new era of video brands for the next generation of viewers and, in Verizon, we have found a partner with unparalleled ad, video and mobile technology that will accelerate the launch of new digital video channels for this mobile-first audience.”
Last month, Verizon agreed to buy XO Communications’ fibre optic network business for US$1.8bn. In early January, it was reported that the mobile operator had kicked off the sale of its data centres in a process worth more than US$2bn.
