Ad-Sponsored Data to Be Part of Verizon’s Internet TV Service

Verizon’s upcoming Internet TV service, expected to launch sometime this summer, may encourage brands to sponsor your binge watching. According to Verizon exec Marnie Walden — who described the new service as a “mobile-first video product” — the company plans to offer live and on-demand programming in addition to content from digital networks such as AwesomenessTV. Rather than passing the additional data costs for such a service to customers or programmers, Verizon is turning to advertisers. “Ad-sponsored data is part of the product offering,” said Walden.

verizonShe noted that “premium offerings” would be available, but did not specify whether that would include an ad-free option.

The comments were made during a conference call this week, announcing the close of Verizon’s $4.4 billion acquisition of AOL. The deal will provide the wireless carrier with an array of new digital content and Web advertising platforms.

Walden believes that allowing brands to sponsor the new service’s data would not be a violation of the FCC’s net neutrality rules.

“While Verizon operates its own Internet and wireless services that people could use to stream its upcoming Internet TV service, the service will also work over its competitors’ Internet and wireless services,” reports Advertising Age.

“However, some features will only work when streamed through Verizon’s pipes, such as ‘multicast for live delivery,’ Ms. Walden said. That appears to mean the ability for one customer to stream live programming from the Internet TV service across multiple devices at the same time.”