Last year it was rumored multiple times that Verizon was interesting in acquiring Intel’s failed OnCue internet TV service. While other suitors were rumored as well, ultimately OnCue did end up in Verizon’s lap. Now it remains to be seen just how Big Red plans to take the nascent service forward, and it appears that the company has already started courting content providers. While speaking at a conference, Verizon CEO Lowell McAdam confirmed that he has personally begun discussions with “CEOs of large content companies.”
It would be interesting to see how far Verizon gets with the providers. One of the primary reasons why OnCue failed to take off in the first place was apparently due to content providers’ reluctance in jumping on board an internet TV service. McAdam didn’t reveal how far along the talks are and exactly which are the content companies he is talking to.
It is a bit too soon to predict right now how content companies are going to react. Verizon is going to put OnCue to use, primarily to bolster its existing FiOS TV offering. A logical use would be to offer the internet TV where FiOS isn’t available, but for the service to truly take off, Verizon needs ample content. The ball certainly won’t start rolling until and unless content partners are on board.