During Frontier’s earning call this week Frontier Communications CEO Dan McCarthy talked about its future plans.
“There have been some advances and some changes in the landscape on the OTT side,” McCarthy said. “We could spend time developing our own or we may partner with others, but I think that will be an important part of the strategy going forward.”
This is very similar to CenturyLink’s plans to jump into streaming. CenturyLink has already started to test live TV streaming in select markets. It also announced that it has even considered selling a rebranded version of DIRECTV NOW from AT&T as its live TV streaming service.
So why would it consider looking at reselling former competitors’ services such as DIRECTV NOW or Sling TV? Many have said the overall cost of running a live TV streaming service is less expensive than some traditional forms of pay TV; however, the cost of launching them is high.
It seems like companies such as Frontier are happy to take a slightly lower profit margin and not have to deal with building or maintaining the service. This seems to be in line with his next statement.
“One of the key priorities is revenue generation, whether that’s really on the commercial side or it’s really making sure that our speeds and our network are congestion-free going forward,” the CEO said. “More and more video traffic is flowing and we want, whether it’s our OTT product or it’s someone else’s, we want to make sure that’s a good experience for customers.”
We have no idea when or if this service is coming, but just the fact that the CEO is talking about it means that high level talks have already started.
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