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Strategy report
To: Proximity Video Team From: Brian Blubaugh Date: June 7, 2009 Subject: Verizon Fios Analysis

Here is my Verizon Fios Analysis. Verizon Fios is the current challenger to Comcast in the distribution of internet, telephone, and television service. With new innovations and package deals, Verizon Fios appears to be primed to become the leader in the distribution of these services. The success of Verizon Fios depends upon being the superior option in cable service to the Gen-Y consumers.


 * Profile**

Verizon was formed June 30, 2000 with the merger of Bell Atlantic Corporation and GTE Corporation. Verizon became publically traded on the New York Stock exchange on July 3, 2000. The Verizon Corporation is based in Irving, Texas. The current Chairman and CEO of Verizon Wireless is Ivan Seidenburg. Verizon Fios revenue comes from consumers in the form of: · One time instillation fees · Monthly payments · Contract cancellation fees Verizon Fios provides 12.7 million homes with Fios capability; 3.1 million subscribers with internet service as well as 2 million subscribers with Fios Television. Verizon Fios accumulated 24.6 billion dollars in revenue in 2009, up 3.4 percent from 2008.

The primary force driving competition in the service provider industry is consumer power. Comcast has been the dominant provider in the field for years. Both competitors provide internet, cable, and telephone service for equivalent cost to the consumer. Comcast appears to have the advantage in the competition due to experience, customer loyalty, and convenience. This field is clearly dominated by Comcast, and it is not yet clear if Verizon Fios will be able to replace Comcast as the dominant service provider.
 * Competitive Landscape**

Verizon’s strategy appears to be to compete with Comcast head to head for customers. Verizon is attempting to win consumers by offering a superior product. Verizon Fios uses fiber optic cable to connect consumers to the Verizon network instead of the traditional copper wires. The use of the new technology provides consumers with a clearer picture, crisper telephone conversations, and a faster internet connection. Verizon Fios provides new technology to consumers including: · Remote controlled multi-room DVR · Exclusive networks (NFL Network) · Free wireless internet hotspots Verizon also has the ability to "cherry-pick" customers. They are under no distribution contract like Comcast so they are free to install and provide there services in premium locations. Verizon is also offering their service with package-deal options. This allows the consumer to use all three of the Fios services for a cheaper, flat rate. Package deals are advertised as a cheaper and more convenient alternative to having independent service providers.
 * Verizon Fios Strategy**

I believe that Verizon Fios will become a successful competitor to Comcast. Their success depends upon their ability to continue to offer a superior product at a low price. Fios has the built in appeal to Gen-Y consumers as the new and more technologically advanced option in the field. I think the main factor that will hinder the success of Verizon Fios is not the product but the distribution of the product. Verizon must physically install fiber optic cables to every home wanting Fios service. This limits the speed with which Fios can spread its service. Verizon Fios is currently offered in only thirteen states with varying availability. In order for Verizon to become a success with Gen-Y consumers it must become an equally convenient and available option.
 * Gen-Y Implications**

Wikipedia. (2009, September 21). TiVo. Retrieved September 26, 2009 from []. Standard and Poor's. (2009, September 5). //Verizon Wireless.// Standard & Poor's Stock Reports. Retrieved September 25, 2009, from S&P NetAdvantage database.
 * References**

Verizon. (2009). //Verizon TV Overview.// Retrieved September 26, 2009, from []

Rabe, Eric. Verizon Fios TV Launches in Pittsburgh. (2009, August 22). Retrieved September 25, 2009 from [] Pittsburgh/ba-p/82013;jsessionid=47E9064847E44F1AB5603CF9FAF6268F

Blog proposal
To: Proximity Video Team From: Brian Blubaugh Subject: Blog Post Proposal Date: Oct 27, 2009 I propose that the Proximity team creates a blog post on advertiser’s attempts to incorporate effective ads into online video. This post can be used to identify effective strategies for incorporating advertisements in online video. The new trend in distributing video content is through the internet. Three current online video advertising techniques are: 1) Sponsored video with a commercial clip in the content; 2) Interactive ads on screen; 3) pure display ads. Gen Y consumers have fully embraced the move to watching premium video online but company’s ability to advertise online has fallen behind. Development of effective online advertising will greatly increase big business’s ability to reach the Gen Y population. I recommend the team organize our post using these two posts as the basis: Business Week’s blog: __What Works in Online Advertising?__ ; which focuses on current online advertising strategies. As well as eMarketers blog: __The Online Video Advertising Picture Clears Up __; which contains statistics pertaining to current online video advertising. [] []
 * Rationale **
 * Sources**

Report proposal
To: Proximity Video Team From: Brian Blubaugh Date: Nov 7,2009 Subject: Final Report Proposal Verizon has developed a new business strategy that will eventually integrate all of their services into one. Verizon CEO Ivan Seidenberg sees a future where video, telephone, and internet are all interconnected. My report focuses on how Verizon intends to reach this future goal as well as how they intend to profit from this new style of providing services. The Verizon company sees a future where there video, telephone, and internet services are all interconnected as well as interactive. This report will allow clients to educate themselves on what Verizon sees as the future of communication networks. Clients will see clearly the full strategy that Verizon has developed to develop, will execute, and capitalize from their new integrated communication networks system. The initial part of my report will focus on Ivan Seidenberg’s vision of an interconnected, interactive communication system. His vision is that television, telephone, and computer will all be very similar devices. All three will provide about the same devices including video content, internet capability, as well as a phone line. The second aspect of his vision is that all three will be interconnected, meaning you can download a video on your phone, watch it on the television or send it to a friend via the phone line. The second part of my report is how Verizon plans on saving money from this new system. It will go into detail about how the fios cable network will lower the need for central offices and service stations normally associated with a telephone system. Also money will be saved from the fiber itself. The fiber used in the Fios system is far cheaper than that of the copper used in traditional phone and television systems. The third part of my report will be the largest and focus on how Verizon intends to market and profit from their new communication systems network. I will go into their plan on how to make advertisements in the new system effective and an attractive investment to other companies. Also, I will delve into how they intend to market their new, interconnected system to the public. The key to their new system is the Gen Y consumers whom, Verizon hopes, will quickly adapt to the new interconnected network services.
 * Needs Statement **
 * Report Contents **

[] Written by Dave Burstein, internet business blogger. This review is for the public, written so that a common person can understand Seidenberg’s vision. This report comes from a public meeting by Ivan Seidenberg about the future of Verizon. The author is a blogger for Verizon so it clearly makes the plan look brilliant. It is merely a report of what Seidenberg envision as the future of Verizon. [] Wikipedia is a free online encyclopedia. It is written for the public to define Verizon Fios. I used this report because it goes into how the Fios technology works as well as why it is cheaper to use than the old copper technology. [] This report is written by Bill Koss a financial advisor for potential Verizon investors. It details how Verizon intends to profit off of their new communication systems. I used this to understand Verizon’s financial strategy, it also contains good graphs and charts I may include in the final report. [] This report is written by consumer research and is a review of the service provided by Verizon by its customers. It is intended to let future customers see how good the services are that Verizon Provides. It is a fairly unbiased source. It does include a survey of customers asking if they would like the new services Verizon may include which I want to put in my report. [] JD Power and Associates is another customer review site. This one focuses on Verizon’s phone network and compares it to other companies. It is written for customers trying to decide which provider to choose. I will use this to show the advantages Verizon already has.
 * Review of Sources **

Team conference presentation proposal
I would like to present the following topics at the conference presentation:

1. The first point that we should address is the current trend away from cable television towards customer determined content access. 2. The second point that we should address is the breakdown of customer determined content access into On-Demand content and streaming content from the internet. 3. The third point we should than address is the major players in both sections of customer determined content such as Comcast and Verizon for On-Demand and Hulu and Microsoft for internet streaming. 4. The fourth point our group should make is how these companies plan to capitalize financially from On-Demand content distribution 5. The final point that our team can make is how to effectively advertise on the new On-Demand style of video distribution.

Sales letter and report prospectus
December 9, 2009 Mr. John Holmes, Director of Marketing Serious Materials 1250 Elko Drive Sunnyvale, CA

Dear John, I enjoyed talking to you the other day at Proximity’s Next Generation Media seminar regarding Serious Material’s need to promote its cause to Gen Y consumers. Enclosed you will find a prospectus for the report I mentioned describing the new Personal TV service being developed by broadcast networks and cable companies. As you informed me the other day, Serious Materials feels that it must raise awareness among Gen-Y consumers about the use of eco-friendly materials during construction while promoting its own cutting edge products. I believe Proximity can work with you to devise a comprehensive campaign that uses on-demand media and social networking to achieve that goal. We can provide you with customized focus group results to help shape Serious Materials image as a progressive, green company. Our faculty consultants can advise your sales force on how to position new products, and our production teams can make multi-platform ads that appeal to Gen Y. In addition, we have a great sample of Gen Y consumers on our campus facilities to do practicality and popularity tests on your new products. I invite you and your staff to join us at Proximity’s Towson office for a special focus group session on promoting Serious Material’s Gen Y popularity. After that session, you can meet with members of our group to discuss how Proximity can help you meet your marketing goals. Sincerely, Brian Blubaugh Associate Media Analyst

enclosure

The current trend among Gen Y consumers is toward the utilization of free video content from the internet. Gen Y can stream the content they want from several websites at a time of their convenience without charge. Previous attempts to use this streaming video as an effective advertising media have had no great success. Proximity’s research shows that Gen Y consumers do not respond to in-banner advertisements. The most effective way to communicate to Gen Y is content-related in-stream advertisements as well as sponsored websites. This report details how placing your advertisement in the correct streaming video content will let you reach the portion of Gen Y that will be most interested in your product. Placing an in-stream advertisement; or sponsoring the correct website effectively providing free content for Gen Y will quickly build popularity among interested Gen Y. This new directional advertising strategy using streaming video will be a cost effective way to reach your target Gen Y demographic.
 * //__ The problem __//**
 * //__ Proximity’s on-demand media solution __//**
 * Available now at **[|**www.proximity.edu**]








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