EVP/CFO Doreen Wade says FIOS video service in Keller, TX, has signed up nearly a fourth of market in five months.
Verizon’s FIOS TV service in Keller, Texas, has signed up nearly one in four potential customers in only five months, said EVP/CFO Doreen Wade at the Bearn Stearns Media Conference in Palm Beach, Fla., this morning. “We are seeing great initial acceptance by customers.”
Verizon is also “encouraged” by the early returns in Temple Terrace, Fla., and Herndon, Va., where it began offering the service late last year. Penetration in Temple Terrace is 11%; in Herndon, 5%, she said.
Wade said that its video customers were making 1.4 video-on-demand buys each month, “much higher than the cable industry average,” and most were so pleased with the video service that they were also signing up for the broadband data service.
Wade said Verizon’s video pricing is “competitive” or “slightly under” cable, but higher than satellite. The basic video package of 180 channels sells for $40 per month, she said.
FIOS TV expects to pass six million homes by the end of this year, 20% of Verizon’s telephone universe, Wade said. After that, the goal is to pass an additional three million a year.