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Verizon's Metamorphosis: Can You See Me As A Tech Giant Now?
STEVE INSKEEP, HOST:
Now let's follow a company trying to buy its way into the future. Verizon is a descendant of the old Bell monopoly phone system. Lately, the company has been acquiring tech firms like AOL and Yahoo. NPR's Alina Selyukh reports on the next steps for a firm so linked to the past you can see it beneath your feet.
ALINA SELYUKH, BYLINE1: If you walk around your city or town and keep your eye to the ground, you'll start noticing round, metal lids embedded2 in the street. That means underneath3 is an important utility. It's usually marked water or sewer4. But some, like this one in Washington, carry the relic5 logo of a bell.
These mark the backbone6 of America's telecommunications. And much of it belongs to Verizon. It's the country's largest phone company. At least that's how you may think of Verizon, a child of a 20th-century phone monopoly. But here's what else belongs to Verizon.
(SOUNDBITE OF ARCHIVED RECORDING)
UNIDENTIFIED HOST #1: Hello, and welcome to TechCrunch.
(SOUNDBITE OF ARCHIVED RECORDING)
UNIDENTIFIED HOST #2: Now with HuffPost live, you're invited to...
SELYUKH: TechCrunch, Engadget, Huffington Post - and then there's this.
(SOUNDBITE OF ARCHIVED RECORDING)
UNIDENTIFIED ANNOUNCER: From executive producers Ben Affleck and Matt Damon...
SELYUKH: It's a reality show, "The Runner" on Verizon's mobile video app, go90. Verizon has been slowly sprawling7 into digital media. It bought several video streaming companies, AOL - now Yahoo. It's also a co-owner of Complex Media, which started as a skater and sneaker culture outfit8 and is now big on hip-hop coverage9.
It has a stake in Seriously.TV, which is a politics and comedy kind of site, in RatedRed, which has a youth-in-the-heartland demographic, and in AwesomenessTV, which makes series like "Royal Crush" and other videos for young women.
(SOUNDBITE OF YOUTUBE VIDEO, "20 WAYS TO DEAL WITH YOUR BOOBS")
ALYX WEISS: This is 20 ways to deal with your boobs.
ALEXIS G. ZALL: These guys right here.
SELYUKH: All this is Verizon's effort to become a top global media company, as CEO Lowell McAdam recently told investors10.
(SOUNDBITE OF ARCHIVED RECORDING)
LOWELL MCADAM: We see tremendous opportunity in the digital video marketplace, which has an estimated addressable market of $180 billion by 2020.
SELYUKH: And the reason for this expansion is actually pretty pragmatic.
CRAIG MOFFETT: Wireless11 in the United States is now a shrinking business.
SELYUKH: Craig Moffett is an analyst12 at MoffettNathanson.
MOFFETT: Verizon is, I think, rightly recognizing that trying to constantly extract more from the consumer for their service is pushing on a string.
SELYUKH: For years, Verizon and other wireless carriers had a growing stream of income as they charged more for our increasing use of data. But now that just about everyone has a smartphone, we keep using more data, but its price is falling. Moffett says bills are going down - not up. In July, for the first time in six years, Verizon reported a decline in revenue. So the company needs more sources of income.
MOFFETT: If you're going to get more revenue per user, it's not going to come from the user him or herself. It's going to have to come from someone else. Well, who is that someone else? That someone else is almost certainly going to have to be advertisers.
SELYUKH: Verizon's $5 billion bargain purchase of Yahoo will instantly make it the third-largest player in digital advertising13. But the wireless carrier is breaking into a market completely dominated by Facebook and Google. And they're in a different league. They have bigger piles of cash, less regulation and don't deal that much with physical things like maintenance of cables or leases on cell towers.
MOFFETT: Fundamentally, Verizon is not a Silicon14 Valley startup. And you can't pretend that it is.
SELYUKH: Verizon of 2016 is not your father's phone company. But its DNA15 still runs through the wires beneath those metal lids. Alina Selyukh, NPR News, Washington.
1 byline | |
n.署名;v.署名 | |
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2 embedded | |
a.扎牢的 | |
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3 underneath | |
adj.在...下面,在...底下;adv.在下面 | |
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4 sewer | |
n.排水沟,下水道 | |
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5 relic | |
n.神圣的遗物,遗迹,纪念物 | |
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6 backbone | |
n.脊骨,脊柱,骨干;刚毅,骨气 | |
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7 sprawling | |
adj.蔓生的,不规则地伸展的v.伸开四肢坐[躺]( sprawl的现在分词 );蔓延;杂乱无序地拓展;四肢伸展坐着(或躺着) | |
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8 outfit | |
n.(为特殊用途的)全套装备,全套服装 | |
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9 coverage | |
n.报导,保险范围,保险额,范围,覆盖 | |
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10 investors | |
n.投资者,出资者( investor的名词复数 ) | |
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11 wireless | |
adj.无线的;n.无线电 | |
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12 analyst | |
n.分析家,化验员;心理分析学家 | |
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13 advertising | |
n.广告业;广告活动 a.广告的;广告业务的 | |
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14 silicon | |
n.硅(旧名矽) | |
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15 DNA | |
(缩)deoxyribonucleic acid 脱氧核糖核酸 | |
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