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Verizon taps ESPN, CBS Sports, others to power mobile OTT platform

Verizon targeting millennials with mobile-focused OTT service

Verizon Communications is tapping college sports in a move to drive customers to its mobile entertainment services and battle over-the-top content providers.

The carrier announced a deal with a handful of college sports programming and networks that it said will be used for a “mobile-first solution that redefines over-the-top video for wireless customers.” The service is set to target millennial viewers who are increasingly looking at OTT services for streaming content.

The latest deal includes agreements with the ACC Digital Network, Campus Insider, CBS Sports, ESPN and 120 Sports. Verizon said the content from these partners would be available later this year for Verizon Wireless customers with data services on their smartphones and tablets. That OTT package has been reported to include up to 30 channels, with Verizon recently signing content deals with AwesomenessTV and Viacom.

There was no word how the carrier plans to bill for the offering, but Verizon Wireless currently provides a basic version of its NFL Mobile service free to customers signed up for its More Everything plans.

“With consumers – especially younger consumers – demanding access to entertainment and information that matters to them, whenever and wherever they are, college sports with all of its live programming and networks targeted to millennials are a natural fit for any mobile-first video platform,” said Terry Denson, VP of content acquisition and strategy at Verizon.

Verizon cited a recent study by CTM/University of Southern California that claims nearly two-thirds of millennials surveyed consider smartphones or tablets as their primary device, and that they are more likely than others to engage in entertainment activities on their mobile devices. The study also touted a 12% increase in overall video consumption between 2013 and 2014, with 18- to 24-year-olds showing the largest increase, nearly doubling the national average.

Verizon has been aggressively pursuing media content delivery through its Verizon Digital Media platform. The telecom giant purchased EdgeCast Networks in late 2013 to bolster its content delivery options. The carrier also has been trialing an LTE Multicast platform at large sporting events, which allows for a one-to-many livestream of video services.

Verizon Wireless was also an initial consumer of video content via Qualcomm’s MediaFLO mobile TV platform that was announced in early 2007. The service, which was dubbed Vcast, offered up a handful of television channels including shows from CBS, Comedy Central, Fox, MTV, NBC News, NBC Entertainment and Nickelodeon. Qualcomm eventually shuttered the MediaFLO service, selling the 700 MHz spectrum that powered the offering to AT&T.

Industry observers have noted the growing importance of streaming content, and especially sports-focused streaming content for mobile operators. AT&T’s pending deal to acquire DirecTV is said to be partly motivated by the telecom operator looking to gain access to DirecTV’s arsenal of sports programming agreements that can be distributed through AT&T’s U-verse wireline and mobile broadband services.

These content deals are also a way for telecom providers with video platforms to better compete against cable television providers that are themselves looking to consolidate operations to remain competitive in the evolving telecom market.

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