Verizon plans to offer a Web-video streaming service in places where it doesn’t already operate its FIOS Internet TV service, according to a report from Reuters (NYSE: TRI). It’s a move sure to draw the attention of Netflix (NSDQ: NFLX) and further complicate what has been a pretty disastrous 2011.
Reuters’ report (timed nearly right to the start of Netflix CEO Reed Hastings’ address to the UBS Conference, which can’t have been a coincidence) says that Verizon could target 85 million households with the service. It would be designed to avoid conflicting with FIOS’ 5 million customers and would offer what appears to be pretty limited content, according to the report.
There’s no mobile angle to this (yet): we’re talking about Verizon Communications, not Verizon Wireless (NYSE: VZ). But Verizon Wireless recently agreed to resell cable service for companies who are also not going to be thrilled about this potential initative.