Verizon Communications is reportedly in advanced talks with media company Hearst Corporation to set up an online video joint venture. The JV would develop two new digital media channels for Verizon’s go90 mobile video app.
Verizon Communications (NYSE:VZ) is reportedly in advanced talks with media company Hearst Corporation to set up an online video joint venture.
The JV would develop two new digital media channels for Verizon’s go90 mobile video app, launched last October, the Wall Street Journal cited people familiar saying.
Options for the new channels are still being discussed and include a comedy network with a politics focus and “heartland-focused content for millennials”, the report stated. The latter would be based in Nashville and be similar to New York-based Vice Media, which has a range of TV channels on topics including news, culture, music and sports already available on go90.
Just how much Verizon and privately-owned Hearst’s Digital Studio’s business would invest in the JV is unclear, the report stated.
Earlier this month, Verizon announced the trial launch of a sponsored data plan called FreeBee Data which allows wireless customers to access content without it cutting into their data allowances. Content providers would pay the telco when users access their material.
Noting that Hearst Magazines is one of Verizon’s few content partners at present, Wells Fargo analyst Jennifer Fritzsche said the move “opens the door for much larger and more lucrative sponsorship content, such as live NFL games”.
During a conference call last week on its Q4 2015 results, Verizon CFO Fran Shammo (pictured) said the company has been encouraged by the use of go90 both on and off its network and promised that users can expect more content, features and better functionality.
However, he indicated that the app is no longer targeted exclusively at millennials, saying “the key to us is not the downloads, the key is viewership. It’s around content and we will continue to add content that is favourable to all generations”.
Verizon’s Q4 2015 results were generally in line with expectations. The company reported consolidated revenue of US$34.25bn, and an adjusted EBITDA of US$10.93bn. The wireless segment accounted for US$23.73bn of revenues, and wireline for US$9.47bn.
Earlier this month, it was reported that Verizon had kicked off the sale of its data centres in a process worth more than US$2bn.
