
Verizon launches trial of mobile video service in test for telecom industry
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Verizon Communications will launch a trial version of its new mobile video service on Tuesday, aiming to prove that telecom players can compete with mobile ad industry titans Google and
Facebook. Read More Verizon: Existing customers eligible for discounted phones Verizon said its service, a mobile app dubbed "go90," will be offered initially to a select set of
its own customers, with advertisements from well-known brands, which it declined to name, but without newly acquired ad technology from AOL, the media company it bought in June for $4.4
billion. A pedestrian talks on his cell phone while walking past the Verizon Communications Inc. headquarters in New York. Andrew Harrer | Bloomberg | Getty Images Verizon is targeting young
viewers or millennials with about 100 to 200 hours of exclusive content from online video networks such as AwesomenessTV and Machinima, said Brian Angiolet, Verizon's senior vice
president, consumer products. The free service will drive revenue from data usage and targeted advertising. Verizon's best chance to prove its advertising potential rests on technology
from AOL, which has built tools to deliver targeted Web and mobile ads. That, combined with Verizon's customer data, should improve targeting, analysts say. The AOL technology is in the
process of being integrated with Verizon's video service, and targeted advertising tools will be available over time, Angiolet said. Read More Cramer: $43 billion is too cheap for
Netflix The service will launch officially to all users as soon as later this month, a Verizon spokesman said. Companies from Netflix to Dish Network already offer Web-based video services
through subscriptions, but the No. 1 U.S. wireless company's ad-supported, short-form video model is unusual. Go90 pits Verizon against Internet advertising industry heavyweights Google
and Facebook, and advertisers will take a "wait and see" approach to determine how many viewers Verizon captures, telecom industry consultant Tim Farrar said. "Pretty much
without exception telecom operators have not been successful as third parties in exploiting the Internet access service, whether it's video or anything else," Farrar said.
"What percentage of people's app viewing is going to be over a Verizon app versus YouTube or Facebook...That's the biggest uncertainty." Verizon's rival AT&T has
said it has mobile video services targeting young viewers in the works. Smaller rivals Sprint and T-Mobile US have said they are watching their competitors' efforts closely. Verizon is
in talks with advertisers and brands about content sponsorships and original-content creation, Angiolet said. The service lets users post comments, form interest-based groups and clip and
share videos in social networks, he added. Verizon's video strategy "holds genuine promise," MoffettNathanson analyst Craig Moffett said in a recent note. Verizon is currently
the only video service to offer advertisers customer data "based on location, at the personal level rather than the household level, with unprecedented knowledge of purchase intent and
a wealth of demographic and prior purchase information," Moffett said. Verizon's content portfolio will evolve in coming months, executives have said. Previously, Verizon said its
upcoming digital video service will offer content from the National Football League, DreamWorks Animation's AwesomenessTV unit and Vice Media. As its trial period begins, content
partners include Comedy Central, Food Network, ESPN, Discovery Network and VH1. From the web, it will offer videos from Maker Studios, Machinima and StyleHaul, among others.