Verizon & Coinstar Redbox vs. Netflix | Jeff Kagan Tech Analyst

Print  | 

     

Jeff KAGAN

Tech Analyst

     

Verizon and Coinstar Redbox are partnering to enter the same space that Netflix created. They will be competing, head-to-head with Netflix. This is the first step toward capturing this segment of the marketplace.

Verizon already operates an IPTV service called FiOS so this is just a matter of delivering content over their existing network. It makes perfect sense for them.

They will be offering this service outside their traditional network as well.

If we take a look at the past performance of Verizon, if I were Netflix, I would be worried.

In the 1990′s companies like CompuServe, Prodigy and America Online ruled the Internet access space. That was in the days when we dialed in over local phone lines.

Then the baby bells and cable television companies jumped in and won most of the business. That sunk companies like CompuServe and Prodigy and AOL is struggling. All that while the baby bells and cable television companies serve most Internet access customers over their DSL and high speed internet lines.

The baby bells have been successful at this model.

The same thing may be getting ready to happen here in this television space.

Netflix started this segment and has been successful. Roughly one third of the traffic on the Internet is Netflix traffic. That is incredible.

That is an opportunity for companies like Verizon, AT&T and CenturyLink as well as other local phone companies.

Unless Verizon blows it with marketing or messaging I think they can be successful in this space. After Verizon I expect to see others like AT&T and CenturyLink jump in as well.

These are all direct competitors to Netflix in this television space. Netflix now has a target painted on their back.

* * * * * * * * * * * * *

These comments may be quoted in news stories. They are being sent by email list and on the web.

Please attribute to Jeff Kagan, Tech Analyst with www.jeffKAGAN.com

If you would like to discuss, call me at 770-579-5810 or send an email to jeff@JeffKAGAN.com

To be added or removed from this list, please send me an email with request.

* * * * * * * * * * * * *

Jeff KAGAN| Tech Analyst www.jeffKAGAN.com

Analyst sharing perspective on the changing industry for 25 years

~ Also Columnist, Author, Consultant, Speaker
~ Column http://www.ectnews.com/perl/section/jeff_kagan/

Phone 770-579-5810 Email jeff@jeffKAGAN.com

Other press releases from Jeff Kagan Tech Analyst, Columnist and Author

• Apple iPhone Sales Weaker Than Expected | Jeff Kagan Industry Analyst - January 14th, 2013
• Will FACEBOOK Launch Phone This Week? | Jeff Kagan Industry Analyst - January 13th, 2013
• Nokia Not Out of Woods Yet | Jeff Kagan Wireless Analyst - January 10th, 2013
• Why Microsoft Windows 8 Holiday Sales Were Soft, Jeff Kagan Tech Analyst - January 5th, 2013
• Sprint Nextel Acquiring Clearwire for Wireless Data | Jeff Kagan Industry Analyst - December 17th, 2012