With nearly two-thirds of Verizon's market covered by FiOS fiber-based broadband service options, Verizon is now spending more and more of its time building out neighborhoods and adding flashy new features to, primarily, the FiOS TV service. On Wednesday, the company unveiled movie purchase and rental options, three-screen or "Flexview" options for DRMed video content, and an app that turns the the iPad into a combination of a cable-ready mobile TV and a DVR.
The "What's Hot" app, available sometime next year, doesn't look or work like a traditional set-top box; there's no DVR function. But Verizon representatives insist the app does essentially turn any iPad into a "software set top box."
Initially, the app will work with your home's Wi-Fi connection and allow FiOS TV customers - the the nation's fastest ISP - to watch what they want on their iPad screen, while someone else in the home might be watching a different show via Verizon's traditional set-top box. Instead of a media guide, the aptly named "What's Hot" app shows a mosaic of animated JPEG thumbnail images of what other FiOS TV customers are watching in your viewing area. Tapping on one of these tiny screens takes you to full-screen, live TV. Verizon executives explained that the app identifies the subscriber through the router and fiber line to the home and knows if the customer has access to certain channels and premium content.
While the app was functioning in today's live demo, Verizon has a long way to go before FiOS TV customers will be able to download and use the app. Each content provider has to agree to allow their shows to play on this additional screen, and Verizon is hoping they'll do it without charging anyone any more money. So far, Verizon has engaged in talks with Time Warner and Turner Broadcasting, both of which have expressed interest in a "TV Anywhere" environment.
The long term vision is for consumers to take the iPad and app outside the home and let them log into their FiOS TV account and watch TV on the road, wherever there's Wi-Fi.
Verizon also unveiled movie purchases and rentals. Starting this fall, FiOS customers will be able to buy and rent movies. Any movie they purchase (in SD or HD, at prices ranging from $2 to $18), they will own for life – even if they leave the FiOS TV service. Instead of local storage, Verizon will store customers' video libraries in the cloud. Rentals expire 48 hours after the first playback.
These new movie consumption services will also enable playback on any one of three screens: the TV set, the PC and a variety of mobile phones. On launch, the service will support RIM's BlackBerry Storm 2, the Droid 2 and Droid X and all Windows Mobile 6.5 devices; videos can be streamed over Wi-Fi, 3G, and 4G. Verizon is also submitting an Apple iPhone app sometime in the fourth quarter.
Rentals can also be stored locally. Finished films will remain on the phone, even the expired ones, until the customer deletes them.
"Mobile devices were very challenging to deliver picture quality we'd be proud of," said Joe Ambeault, director of product development and management of video services for Verizon, even though today's powerful smartphones outstrip set-top box processing power by an order of magnitude, he said. Verizon's FiOS TV Media Manager app is the company's third mobile app. Other Verizon apps include a portal to manage your TV viewing experience, including setting your DVR to record from your phone, and one that turns your phone into a remote control for your set-top box.