Verizon Rumored to Offer Streaming Video Service in 2012

Verizon is poised to provide a streaming video service in the New Year.

Interesting buzz is starting to circulate about an attempt from Verizon to break into the video streaming business. Conflicting reports have the company entering the market by either a buyout of an existing company or starting a new division of the business. Both scenarios should have cord cutters intrigued.

Earlier this month, Reuters reported that Verizon Communications, the parent company of the second largest US phone company, is set to launch a streaming video service in 2012. The well known wireless service provider will focus on delivering movies and programming for kids.  Verizon would roll out the product in 2012 and offer it to customers that don’t have access to its triple play package called FIOS. According to Reuters, that would be about 85 million homes.

A few days after the Reuters report, Bloomberg, a credible financial news agency, claims that Verizon is “very serious” about placing a bid on the subscription based movie lender and streamer, Netflix. An offer would land in the 4-5 billion range, the valuation of the company. The time of the deal would take us to Easter of next year.

Either strategy would be beneficial to Verizion due to increased popularity in cord cutting, which won’t slow down in the coming years.  In order  to recuperate lost business, Verizon wants to get on the internet streaming bandwagon. Not a bad move by any means.  More competition in the market place would be good for everyone. We could get better prices, more content, and higher quality streaming.

Overall, these are just rumors and the two articles conflict each other.  Both sources are credible, so we should keep our eyes open in the coming weeks.

We leave you with a question. Would you be more incline to purchase online streaming if Verizon offered it at a more competitive price in comparison to other options? Let us know!

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