Verizon wants to move away from being the dumb pipeline. For perspective purposes, Verizon has 108.6 million mobile sets of eyeballs and Comcast 22.4 cable million cable television subscribers. In its current business model, Verizon does very little to monetize its customer base.
With the AOL acquisition, Verizon is coming the back way in at a reasonable price. What better way than picking up some high level brands besides AOL, the company brings Huffington Post, TechCrunch, and Moviefone to the table. Take a tour of AOL’s advertising machine; I am impressed.
This deal is all about a platform and expediency to the market with some brands customers already recognize. AOL has done a great job of entering the movie video market, and Verizon wants to parlay its purchase of OnCue, a video streaming platform Verizon intends to launch in mid 2015 with 20 to 30 channels. It is all about video
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AOL only generates $2.6 billion in revenues; that is not going to impress anyone as it stands against Verizon $126 billion revenue stream. Layer in the fact that Apple TV generates near $5 a month per customer and it starts getting interesting. What can AOL do as it takes control of the porthole and almost 110 million phones, becoming the Apple TV in your pocket?
There is a lot of competition in the land of tablets and TVs. Apple, Google, and Roku are
Baseball Jerseys Whoesale, Cheap Jerseys MLB big in the market. I also question how Verizon can pull off the multi platform play where other players are already positioned. For $4.4 billion it will find out.
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