Verizon testing V Cast advertising model

Feb 11 2006 - 03:45 PM ET | Verizon Wireless

Verizon Wireless is testing a two-tiered pricing model for its V Cast multimedia service. The original price point was $15 a month for unlimited access, but the company is now testing a plan that incorporates advertising and a lower monthly fee.

RCR Wireless reports from the Advertising Age's Madison & Vine Conference at the Beverly Hills Hotel:

"Customers we've seen are willing to accept advertising, but we believe we need to show them why," said Mr. Stratton. "There should be some economic reason why" subscribers would opt in for ads, he said. He said, by way of example, that Verizon Wireless charges customers one fee for its VCast service-which provides TV-quality video for cellphones-without advertising, and a lower fee for those willing to accept ads "as long as it doesn't go over a certain threshold."

Stratton didn't mention what kind of discounts consumers can expect. Because V Cast's video service is currently purely on-demand content, it's perfect for having short bumper ads.