Verizon has been in talks to buy Intel's over-the-top video service, OnCue, for the past couple of months, and just last Friday Bloomberg reported that the two companies are now very close to a deal. The names Verizon and Intel don't scream video innovation, but Verizon could use the OnCue technology in a number of creative ways that give you more avenues for watching TV when and where you want.
Verizon hasn't said what it intends to do with OnCue, but the most likely scenario is that it will use OnCue to build a new Internet video feature into FiOS TV, its own fiber-powered pay TV service. The technology could allow subscribers to watch their FiOS TV programming through an OnCue front end from anywhere, and on any device, with an Internet connection. For example, if you subscribe to a premium channel like Showtime, you could watch Homeland on your notebook, tablet or smartphone, even if you're half way around the world from your actual TV.
Verizon is under pressure to keep pace with the "TV Anywhere" capabilities in Comcast's new X1 service.
This feature would give Verizon a leg up in the cable wars, because right now no other pay TV service (save Comcast's limited-availability X1 service) offers "place-shifting" capabilities built directly in. Right now, FiOS TV service is available only in selected areas of 16 states where Verizon has built its dedicated fiber network. But with an OnCue service, Verizon could conceivably sell FiOS TV nationwide, as customers might be able to access all content directly online.
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