The Strategist

Verison Aims on Young Audience

07/15/2015 - 17:25

American mobile operator Verizon is betting on the news. The company have decided to sign a contract with the news content supplier Vice Media and is going to sell it to owners of smartphones and tablets.

By Bree Brouwer
By Bree Brouwer
This morning, Verizon said that the creator of Vice magazine, and YouTube Channel Vice News entered the list of its partners. It is a powerful player in the information field, whose capitalization is estimated at $ 2.5 billion. Vice Media attracts a younger audience to watching the news, and this format apparently looks like a tidbit for the mobile operator, for which the young people are also an important source of income.
A suitable platform is already awaiting Vice Media’s content. This year, the operator is about to launch  a corporate video service. His task is to compete with other suppliers of network video such as YouTube. Verizon hopes to partially replicate Netflix’s business model, and attract an audience through a unique software contents. Vice Media will provide part of the exclusive content, as it is going to shoot scenes specifically for Verizon.

It is already known that the contract is concluded for several years. Verizon’s direction is trying to get in the trend: currently, people give up watching TV and more and more content is being streamed. Thus, the spread of LTE technology, that is, 4G-Internet, allows watching high-quality video streaming. In addition to Vice, Verizon Wireless also has signed agreements with other major players, such as Viacom, AwesomenessTV, Scripps Networks Interactive, ESPN, CBS Sports.

Obviously, sports and entertainment content are emphasized, so that the inclusion of Vice Media in the partners list provides the company's special place in Verizon’s program grid. Perhaps, the mobile operator is impressed by the popularity of The Daily Show and comparable shows in the genre of "infotainment". Apparently, Vice News is able to create a program that will not only inform but also entertain. Will a special focus be made towards humor or youth will help gain views? It is not known yet.

We should also mention the fact that the partnership agreement with Viacom can provide Verizon access to MTV, Comedy Central and Nickelodeon.

The Daily Show comes out just at Comedy Central, though extremely popular host John Stewart is preparing to quit the project. Will Vice Media create an equally popular programs? If so, this is the first example of new shows promotion in the mobile segment with the potential for transfer to a traditional field. So far, such programs were created for traditional platforms - TV and desktop computers and only after the projects could get into the mobile segment. Previously, Verizon said that its television package will amount from 20 to 30 channels, including cable and terrestrial players and content. It is possible that this list will be gradually expanded. However, each contract is already a victory. Today, Vice Media receive offers from the biggest players in the sector and does not always agree to cooperate – we can see it as the newsmaker already has contract to broadcast on HBO and delivery of video for Spotify among its most successful transactions.

Earlier this year, Verizon acquired famous in the past AOL company for $ 4.4 billion. Experts claim that this was done for the sake of new advertising technologies and the empowerment of the dissemination network streaming.