It looks like Disney
FiOS TV is expected to open today in Keller, Texas. The asset comprises an important element of diversification from which Verizon hopes to reap value-enhancing benefits down the road. FiOS TV has been blessed not only by Disney but also by General Electric's
All of these media companies really have no choice but to bless FiOS TV. When you think about it, the chance of a new platform becoming huge is not something that can be approached nonchalantly, nor is the chance to create incremental revenue streams from your franchises. It's important for content providers to strike deals early on to ensure that their branded forms of entertainment and information are available to as many subscribers as possible.
Whether the FiOS TV distribution system catches on or not is anybody's guess, but early positioning is vital. And signing up a powerhouse like Disney certainly is a win-win situation. It's also a positive sign that the subject of digital thievery was discussed upfront, because it is such a devastating scourge to shareholder value for the media conglomerates. I think consumers will welcome a new pipeline option for their homes. And with good content and a decent price, FiOS TV should create a lot of buzz.
Some Foolish related reading:
- Verizon's Universal Appeal
- Movie Studios vs. Jolly Rogers
- Steiner Goes to Disneyland!
- When Mickey Met China
- Verizon Can Hear Yahoo! Now
Check out the Disney and Verizon discussion boards and feel free to post your thoughts.
Time Warner is a Motley Fool Stock Advisor selection. Click here for more about Tom and David Gardner's newsletter.
Fool contributor Steven Mallas owns shares of Disney and General Electric. The Fool has a disclosure policy.