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Frontier Communications looking to millennials with OTT video

  • Frontier Communications (NYSE:FTR) is going ahead with its millennial-focused trial of over-the-top video, through a partnership with TiVo.
  • Speaking at an investor conference, CEO Dan McCarthy said "We're looking at how to attack a segment of the market that's not interested in a pure linear play."
  • After a net decline, Frontier ended the first quarter with 577.7K video customers, though after it finishes its acquisition of Verizon's properties in California, Florida and Texas, it will total 1.8M video subs.
  • McCarthy says through its partnerships, Frontier is gaining experience in delivering video in various ways: "We have a pretty good view on how you can provide video over fiber and over copper."
  • Frontier plans to look for organic growth opportunities and expanding FiOS in the markets it's assuming from Verizon, FierceTelecom notes. And the streaming video moves will go hand in hand with network investments, particularly to last-mile broadband.
  • "When you look at the capex side on how we think about things, speed and capacity of broadband are right at the top," he says. "In the future, it may be loop shortening, which would dramatically change the speed profile for an individual household, but today the bigger investment is really making sure the ecosystem supports the increasing bandwidth requirements associated with video streaming."

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