There are not many multi-billion-dollar new markets mobile operators can easily create.
Verizon’s media operations generate perhaps $8 billion annually, by way of comparison, based on revenues from The Huffington Post, TechCrunch and Yahoo Sports and other assets acquired for about $9 billion as part of the AOL and Yahoo buys.
And that is generally considered to be a failure.
Consider that the whole U.S. software-defined wide area network market might be worth $2 billion annually. And SD-WAN arguably is the most-strategic product in the WAN provider business.
The U.S. “unified communications” business, including on-premises switches, conferencing services, hosted services, software and trunking services, might be in the $8 billion to $19 billion range per year, depending on which estimate, with which constituent elements, is used.
The point is that it is rather hard to create a new revenue stream measuring in the billions of dollars, in the U.S. market.
Linear video subscriptions now are worth $91 billion annually in the U.S. market.
And that, quite simply, is why many mobile operators see subscription video as a meaningful new revenue source. It is a huge generator of revenue on a scale that few other products can match.
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