Verizon Communications Inc. (NYSE:VZ) Nets Another Video-Themed Asset – Volicon
Verizon Communications Inc. (NYSE:VZ) has acquired video capture and monitoring company Volicon. That comes as Verizon is building out its video portfolio, acquiring AOL to advance boost its mobile video efforts and rolling out mobile video service Go90.
Verizon Communications Inc. (NYSE:VZ) didn’t disclose how much it paid for Volicon, but revealed that the tool is widely used by television broadcasters worldwide. Volicon offers a range of video-themed solutions that include ad verification, compliance monitoring, competitive analysis and optimizing videos for Web posting.
Who’s using Volicon?
Volicon’s tools are used by over 1,200 broadcasters and other video operators. Verizon is hoping that the acquisition of Volicon will enhance its video offerings and increase its chances of success in the space.
The acquisition of AOL, for $4 billion, brought to Verizon Communications Inc. (NYSE:VZ) powerful ad technology that the company can leverage to run a more profitable video business. Its Go90 app renders simplified and low-cost mobile video service. But it has to battle it out with likes of YouTube, Netflix and Hulu, which are already household names in the digital video market.
In search of new growth
As it has become increasingly difficult to grow wireless subscribers, phone carriers are focusing attention on the video market. T-Mobile US Inc (NASDAQ:TMUS) and Sprint Corp (NYSE:S) have their versions of mobile video and AT&T Inc. (NYSE:T) acquired DirecTV to bolster its play in the video market. Verizon Communications Inc. (NYSE:VZ) rolled out Go90 and is clearly looking at more video related opportunities to drive growth in the space.
The rise in demand for on-demand video consumption is fueling the growth of mobile video services. Verizon Communications Inc. (NYSE:VZ) and all others involved want to make it easy for customers to stream their favorite shows anywhere and anytime.
With the latest acquisition, it will be interesting to see how Volicon helps Verizon Communications Inc. (NYSE:VZ) to boost its competitive edge in the digital video market and more specifically mobile video rendering.
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