It’s the content stupid! Verizon to Acquire AOL

It’s the content stupid! Verizon to Acquire AOL

Verizon is building out its premium offering
Verizon make a play for Aol's Video and advertising

It seems the strategy folks at Verizon think they have figured out make money out of mobile video and AOL is going to help them do it.  First off, let me say that I am overwhelmingly delighted that someone has figured it out.  They have also come to the conclusion that premium content is key to a premium brand and customer experience.  I happen to agree with most of this.  From the press release:

AOL is a leader in the digital content and advertising platforms space, and the combination of Verizon and AOL creates a scaled, mobile-first platform offering directly targeted at what eMarketer estimates is a nearly $600 billion global advertising industry. AOL’s key assets include its subscription business; its premium portfolio of global content brands, including The Huffington Post, TechCrunch, Engadget, MAKERS and, as well as its millennial-focused OTT, Emmy-nominated original video content; and its programmatic advertising platforms.

So Verizon get their hands on some real neat video and advertising tech.  The advertising tech is key to monetizing all that video and content.  Online video advertising is still relatively nascent in terms of spend, when compared to its traditional rivals.  This is a good move by Verizon, like killing two birds with one AOL.  These are the kind of initiatives operators will have to undertake in order to maintain/grow  ARPA/U over the long term.  Verizon’s ARPA is already at a healthy $143 per month, but they will want to keep growing that with premium content and advertising. 

Tim Armstrong, AOL chairman and CEO said, “Verizon is a leader in mobile and OTT connected platforms, and the combination of Verizon and AOL creates a unique and scaled mobile and OTT media platform for creators, consumers and advertisers. The visions of Verizon and AOL are shared; the companies have existing successful partnerships, and we are excited to work with the team at Verizon to create the next generation of media through mobile and video.”

More Here… [Verizon]

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