Some FiOS Customers Can Trade in Set-Box for XBox (NewsFactor)

In a move that may get more people in new markets signed up for Verizon's FiOS Internet and TV services, the communications giant has announced a way for premium users of Microsoft's Xbox 360 to access 26 FiOS channels.

Beginning in December, there will be an app for that.

You're the Remote

Verizon says the deal will expand a "borderless lifestyle for consumers," allowing Xbox LIVE Gold members who also subscribe to both FiOS TV and Internet service to view "select live channels" via Xbox with no additional hardware. The app will be available for download next month, and the 26 channels depend on the level of TV service you select.

Xbox users can already watch streaming movies via Netflix.

Using the Kinect motion sensor, Xbox users will be able to use voice and gesture commands to select their channels and adjust volume.

"Joining forces with Microsoft and Xbox, we are breaking the boundaries between TV and gaming, and furthering the borderless lifestyle Verizon customers enjoy with our new offers and services," said Eric Bruno, vice president of consumer and mass business product management for Verizon. "We are putting the controls in our customers' hands, and giving them the ability to watch TV on another dynamic device that they can control with voice and gesture commands."

To sweeten the deal, new customers who sign up online through Jan. 21 will pay a special rate for triple-play TV, Internet and voice phone service, $89.99 a month, including a one-year Xbox Live Gold Membership and a free Xbox game, "Halo: Combat Evolved Anniversary."

Xbox Live Gold membership starts at $5 per month, depending on options, or $8.33 per month for family membership.

To further gain the attention of the gaming community, Verizon is cosponsoring the Dec. 9 Gamers Choice Awards with gaming network Machinima, with winners decided by the public via Facebook and Twitter.

Tapping New Markets

Technology consultant Rob Enderle of the Enderle Group sees the offer as a way for Verizon to reach beyond its geographic market limitations.

"This solution will be most attractive to people who can get Internet but where FiOS isn't now offered and it should be far cheaper for Verizon to provide than a typical FiOS household," said Enderle. "In short, it allows them to compete for business that they currently don't have physical access to, and it does anticipate a time when what we now call cable services are separate from the company that actually provides your physical connections."

But as the Internet continues to shake up the home entertainment landscape, Enderle said, Verizon will likely still focus its efforts on selling traditional FiOS access.

"Near term I think they will still prefer the inherent lock-in of a full cable solution if they have the choice," he said. "This would ideally be placed where that choice doesn't exist or as a hedge against what appears to be a growing de-bundling trend."

Source: http://us.rd.yahoo.com/dailynews/rss/internet/*http%3A//news.yahoo.com/s/nf/20111130/tc_nf/81164

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