 By Silicon
el 30-Jul-2008 |
verizon-free-tv.jpg: Paste this image in your site, Myspace, Facebook, Ebay copy this code...
 Verizon has invested a fortune in its new FiOS TV service, which is supposed to offer TV watchers an alternative to cable and satellite. But it may be that what TV watchers really want is a free TV -- and without one, they're not very interested in switching.
One of the surprises from Verizon's (VZ) second quarter earnings: Far fewer people signed up for the telco's FiOS TV service than Wall Street expected.
During Q2, Verizon added 176,000 net new FiOS TV subscribers, down 33% from 263,000 in Q1 and 226,000 in Q4. The 176,000 missed RBC's estimate (273,000) and Goldman's (230,000) by a wide margin.
One of the explanations Verizon provided: It had stopped bribing people to ditch their cable companies with free hi-def TVs.
CFO Doreen Toben:
"The sequential decline in FiOS net adds was due primarily to a lower level of promotions, marketing and advertising activities during the quarter. For example, we ended our free TV offer."
COO Denny Strigl:
..."FiOS net adds in the second quarter were actually about what we had expected coming off of the very good first quarter, which was that free high-def TV."
Does Verizon really have to sweeten the deal that much to steal customers from cable and satellite? If so, that's hardly something to get excited about.
We do expect to see numbers rise this quarter -- Verizon has promised increased marketing, and will launch FiOS TV in New York City, where the telco hopes to have 500,000 FiOS-ready homes by the end of the year
See Also:
The End Of DSL? AT&T, Verizon Show Weak Broadband Growth. Good News For Comcast, Cable?
Verizon Q2 In-Line, No "Significant Economic Impact" Expected In Second Half
Time Warner Cable's Plan To Fend Off Verizon: Less-Crappy Service, Long-Term Contracts
Read 3 times
|
Hello, Guest
Online: 61 visitors
+ fotos
At long last, Verizon (VZ) will be able to sell its FiOS cable TV service in New York City, after getting approval today from the New York State Public Service Commission. The telc [..] 
One sign Verizon (VZ) is making progress building out FiOS in Manhattan: on Friday they started work wiring a huge 1,728-apartment coop on the Lo [..] 
According to Vincent O?Byrne, Verizon?s technology director, Verizon is planning to roll out 100Mbps FIOS in 2009. This move will expand the ultra high speed network beyond its limited test market which has been enjoying 100Mbps for at least a year now. With Comcast deploying DOCSIS 3.0 and upping the speeds it offers to 50Mbps [...] [..] 
Verizon just took a big step closer to getting a license to wire all five boroughs of New York City for its FiOS TV network. Today New York City's Franchise and Concession Review C [..] 
Here's one way to solve the "Web video to TV" puzzle: Have your TV service move the video there for you.
Verizon FiOS is in trials with YouTube, blip.tv, Break.com and Veoh to bring W [..] 
We hope Verizon (VZ) boss Ivan Seidenberg doesn't get his business news from French newspaper Le Monde, or he might have had a small stroke this week. In an article abou [..] 
AOL's Platform-A ad division will sell ads for Verizon's (VZ) Web and mobile properties, the companies announced today. Most likely, this is just a press release to remind everyone that Platform [..] 
