The U.S. wireless market is at a mature stage, smartphone sales growth has slowed, and the probability of finding someone without a wireless plan is slim. Though wireless carriers will still be able to increase their revenues as data consumption grows, without subscriber growth their user base numbers will be stable at best.
The c ountry's two largest wireless carriers, #Verizon and #AT&T (NYSE:T), have gone in two different directions, more so because of Verizon's push to create a content empire. But why is Verizon going down this road?
Why Verizon needs this new line of business
The first clue to that is that online advertising is expected to grow at double-digit rates for the next four years. The second is that cable is also approaching a tipping point because of heavy competition from video streaming sites like #Netflix (NFLX), #YouTubeRed, #Amazon (AMZN) Prime Video, #Hulu, #HBO Now and so on.
So Verizon found itself facing two mature service industries that weren't going to yield the kind of growth it was looking for, and online advertising became the desirable third option.
Therefore, Verizon went on a buying spree and grabbed up as many of the top content sites as it could. With all these brands under its belt Verizon is now ready to take on the monsters of online advertising - #Google and #Facebook (FB).
Five years ago the online advertising market was at the mercy of Google. Then Facebook came along asking for equal rights and has grown its advertising business to nearly $17 billion through last year. Now Verizon is looking to become the third player in the market. Wherever the money goes businesses will follow, and Verizon did.
http://finance.yahoo.com/news/verizons-master-plan-google-facebook-201255189.html
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