Sure, Verizon will surely attract some curious customers wanting to give it a try, but overall it's doubtful it will be a big win for the company.Īs a matter of fact, if it pays too much for it, we could see a backlash from investors, because it would take some time to recoup capital spent on the deal. Why would they migrate from their current providers to another one that only streams content to devices? Where is the incentive?Īgain, the incentive would be in the unbundling of content.
#Oncue verizon tv#
This is why I say having an entirely streaming version of cable or satellite TV has little to attract consumers. But since the industry isn't there yet, it could be a long time before OnCue would generate significant growth for Verizon. If content was unbundled, I see that as having real potential. The most obvious potential benefit to Verizon is it will be able to offer content in markets it has no physical presence in, which theoretically could generate a lot of new customers. It will surely go for much less than that. It is thought Intel spent as much as $500 million on the effort, and it originally was asking that for the business when it started shopping it around. Since that's the case, it's difficult to see how OnCue will help Verizon, as it's not likely in the near future that a la carte deals would be allowed to be made to attract more customers to Verizon.Įven though Intel is sure to lose money on a sale of OnCue, it is better to get rid of it now than put more capital into it and be forced to sell later. The major problem for Intel with OnCue is its inability to make a deal with content providers, as the company wanted to get creative with various channels so it could differentiate from its competitors.Īs it was unable to offer consumers different channel packages, there was little OnCue could do to boost revenue and earnings at Intel. It's the primary reason I believe Intel is getting rid of the business. Why a consumer would switch to Verizon is questionable at best, as the catalyst simply isn't there at this time. This doesn't appear to be a very lucrative move by Verizon, as it is basically acquiring a business that will allow it to be an online version of a cable or satellite company, carrying the same content. It was meant to empower the company to offer the same content cable and satellite companies do. OnCue was developed by Intel to provide digital streaming content ability. Numerous reports point to Verizon Communications ( NYSE: VZ) acquiring OnCue from Intel ( INTC), as the chipmaker, after a change in leadership, decided to focus primarily on chips for mobile devices.
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