Verizon Wireless Launches Video Entertainment ServiceVerizon Wireless Launches Video Entertainment Service

Verizon Wireless on Tuesday launched its multimedia video service, rolling out news, sports and entertainment clips that the company hopes are compelling enough to lure customers from competitors.

In debuting its V Cast service, Verizon made available to subscribers short-content video that included news from NBC, CNN and MarketWatch; weather from AccuWeather; sports from ESPN and Fox Sports; music videos from VH1; and celebrity news from E! Entertainment Television.

Basic V Cast service costs $15 a month and includes more than 300 video clips that are updated daily. Application download fees apply to 3D games and premium content, which are available at an additional cost.

Subscribers will need to buy a new phone to access the service. LG Mobile Phones, Samsung Telecommunications America and UTStarcom Personal Communications manufacture the advanced handsets.

In the wired market, offering unique content on broadband is expected to be a key lure for customers this year, according to market researcher JupiterResearch. Telephone carriers and cable operators last year competed heavily on price.

A survey of broadband consumers found 47 percent of the respondents willing to pay an additional monthly fee for bundles of entertainment or security services, JupiterResearch said.

With V Cast, Verizon believes wireless subscribers with advanced handsets will also be attracted to premium content, even if it cost more than the basic service.

"For the first time, the (video) content available over our wireless network is compelling enough to draw customers to our service," Paul Palmieri, executive director of programming and business development for Verizon, said. "The combination of a superior network and premium services will allow us to remain significantly differentiated from our competitors."

The company's own market research shows that consumers are willing to watch video on cellular phones during the day when they have free time, during a subway ride, for example. The content, however, has to be less than five minutes, which is just enough time for a music video, sport highlight or mini-series.

"Long-form programming doesn't make sense," Palmieri said.

Verizon has licensed exclusive mini-dramas designed specifically for cellular phones from News Corp.'s 20th Century Fox division. Those programs include "24: Conspiracy," "Sunset Hotel" and "Love & Hate."

VCAST runs on Verizon's 3G EV-DO network, which first launched commercially in October 2003 in San Diego and Washington, D.C. The Internet-based service, which initially targeted business customers and mobile professionals, runs at average user speeds of 300 kilobits per second to 500 kilobits per second.

Analysts have said that the quality of V Cast video is good for a small screen. Verizon's closest competitor in the emerging consumer market for high-speed Internet services is Sprint Corp., which doesn't have the same breadth of video programming, according to market researcher In-Stat.

V Cast today is available in 32 metropolitan areas, or 75 million people, company officials said. Verizon plans to expand coverage to 150 million people by the end of the year, but won't say how many more cities will be covered.

Verizon Wireless, based in Bedminster, N.J., is a joint venture of Verizon Communications and Vodafone.