Several media sources say that Verizon (NYSE: VZ) will begin a service that will compete with Netflix (NASDAQ: NFLX) The video rental service is considered competition to cable companies, telecom TV products, and satellite TV companies. Netflix delivers premium content directly to its customers, who number over 20 million, without paying a toll to broadband carriers like cable companies.
Reuters writes:
The phone company is talking with prospective programming partners about the service, which would be introduced outside of markets where it currently offers its broadband and TV package, known as FiOS, these people said. That would make it available to some 85 million U.S. households.
The service could begin next year.
Netflix is already embattled because it raised rates and alienated many customers. As many as one million left the service. Netflix has new competition from kiosk service Redbox. It cost to licence programs has risen with its success. Netflix once high flying stock prices has been ruined by the developments