Verizon execs can’t seem to refrain from throwing cold water on the hopes of many consumers for the upcoming Redbox Instant streaming service. Verizon CEO Lowell McAdam recently characterized his feelings toward the service as “cautiously optimistic”, and now CFO Fran Shammo says the service likely won’t see a profit until at least 2014.
Shammo’s comments came during Verizon’s quarterly earnings call with investors. Verizon’s acquisition of Hughes Telmatics and establishment of Verizon Digital Media Services will also take some time to recoup their associated costs, according to Shammo.
“So when you look at Redbox, Hughes and VDMS, these will all start to contribute to top-line revenue in [FiOS] wireline for 2013, but again, probably not much in the profit area . . . Because they are all startups and I would think that in 2014, these will really start to contribute to the overall profit.”
Are these Verizon executives just being prudent by downplaying expectations for the upcoming streaming service, or are these revelations admissions of concern with the service’s viability?
[via Home Media Magazine]