Recently telecommunications giant Verizon disclosed that Go90, a mobile video service, will be integrated under Oath, the wireless carrier’s online advertising and digital content unit. The mobile video service was unveiled three years ago by the No. 1 wireless carrier in the United States with the target market being the young generation. At the time of the launch there was a flurry of activity both in communications and media as firms rushed to roll out services and applications relating to digital video.
The mobile video service has however lost its competitiveness and revenue growth has slowed. Last year in January Verizon revealed that it would be laying off approximately 155 employees of the Go90 platform.
Brands that fall under Oath include AOL, Engadget, Yahoo News, TechCrunch, Yahoo Sports, HuffPost, MAKERS, BUILD Studios, Yahoo Mail, Tumblr, Yahoo Finance, and others. While the deal involving the acquisition of Yahoo businesses was closed last year in June, AOL was acquired by Verizon three years ago. Last year Go90 was made available in some of the brands that are under Oath.
The acquisitions are part of a strategy by Verizon to diversify and become a consequential player in online advertising and digital content. Recently the leading wireless carrier in the United States obtained streaming rights for National Football League games. The licenses for the streaming rights were priced at $2.25 billion and will allow the wireless carrier to stream content from the NFL on both mobile and digital platforms.
Verizon also recently inked an agreement with A+E Networks with a view to broadcasting the cable operator’s content in its online media suite. The No. 1 U.S. wireless carrier will thus get to stream various sports such as women’s soccer on its Go90 and Yahoo Sports platforms.
In 2017’s Q4 Oath generated revenues of approximately $2.2 billion and this was a growth of 10% from the previous quarter and this was attributed to a rise in customer advertising spending especially around the holiday season. By 2020 Verizon expects revenues from Oath to have reached a figure of over $20 billion.
Verizon’s move to integrate Go90 under Oath comes in the wake of wireless carrier offering free Netflix for a period of one year for subscribers of FiOS Triple Play. Under the triple play package consumers are offered a landline telephone service, television and internet at a cost of $80 a month. This is expected to not only attract more customers but also enhance the retention of the existing ones.