TelcoTV: Is Vudu carriers' biggest headache or opportunity?

ANAHEIM, Calif. –Vudu and other over-the-top streaming video providers have the ability to deliver over any broadband providers’ network. This creates a potential headache for network owners like AT&T and Verizon. But whether it becomes a migraine or an opportunity depends on how they approach it, according to Edward Lichty, executive vice president of strategy and corporate development at Vudu, who introduced himself here at the Telco TV show as an insurgent in the telco space.

“The open pipe is great for Vudu,” Lichty said in his keynote address. “For telcos, it’s no question there are headaches. A competitor who doesn’t have to invest in infrastructure could create headaches for networks, but we’ve found they don’t….The flip side is you have the opportunity to offer a really convenient service for your customer. I emphasize convenience over control. Our strong view is that the customer experience is what will ultimately drive the success of the service, not control.”

Lichty admitted it’s a challenge to navigate due to network issues, reliability concerns and software update requirements, but it could ultimately benefit a telco. In his opinion, service providers have three options in response to a service like Vudu: Offer their own competitive experience, which could work for big players like AT&T and Verizon; ignore it and stick to their original pipe, which he said wasn’t likely the path for most in attendance; or synergize with those who do have the DNA to integrate tightly with existing offerings.

“I think depending on how you look at your capabilities, your assets, any one of these things might be right to do,” Lichty said.