Verizon Alters Plan, Will Launch Scaled Down OTT TV

Verizon is planning to launch its own over-the-top (OTT) TV service soon, says Bloomberg Business. The service, to be called Go90, is still in

Verizon is planning to launch its own over-the-top (OTT) TV service soon, says Bloomberg Business. The service, to be called Go90, is still in the testing phase. An unnamed source told Bloomberg that Go90 will launch with only a few media partners including AOL, Dreamworks Animation, SKG Inc.’s Awesomeness TV, Vice Media and Viacom Inc.

Slash Gear points out this line-up is in stark contrast to Verizon’s original plan to offer Custom TV packages, starting at $65/month. According to the earlier announcement, customers will be able to choose bundles of channels with extra channel packs available for $10 each.Verizon’s OTT option was designed to offer a cheaper variation of programming than what users can get via satellite or cable. The initial version of Go90 will also not include HBO Now, as Verizon promised in July.Bloomberg says Go90 will show ads, but not the major TV networks (ABC, CBS, FOX and NBC) it originally planned. Instead, Go90 will be limited, and it will target teens and young adults.On a July earnings call, Verizon CFO Fran Shammo said, “It won’t be the full entirety of everything that we contemplate within the product set. It’ll be an initial launch and, as the year goes on, it will progress.”Insider Take:

Verizon is making a big mistake here. In its desperation to compete with U.S. wireless carriers, the company made a big splash this spring with big plans for its own OTT service. Now it is backpedaling and essentially saying, “Nevermind.” Instead, Verizon is offering a half-baked version of its original plan, and adding to it over time. Why?We understand the need for thorough planning and market testing, but Verizon has bungled this. With so many other OTT players in the market, launching a scaled-back version is not going to attract its target audience, nor solidify loyalty with current customers. In fact, it is likely to turn them off.To woo customers away from their coveted cable or satellite TV and to compete with other OTT services, Verizon has to offer something new, different and special – not a hastily developed line-up. Verizon would be better served to take its time, discover what its target market really wants, and then pursue the relationships and partnerships with networks and studios to make that happen. Our prediction: Failure to Launch.~ Dana E. Neuts, Subscription Insider

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Dana E. Neuts

Dana Neuts is Subscription Insider's Editorial Director, covering our daily subscription news as well as member features, case studies, premium content, and reports. Dana is also a writer, editor, marketer and communications professional. Her work has appeared in AARP Bulletin, The Seattle Times, Seattle Business, 425 Business, 425 Magazine, South Sound Magazine, Northwest Travel and more. Her specialties include business writing, community news, senior issues, travel and, of course, subscriptions!