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The Verizon Communications ( VZ ) Go90 mobile video service is off to a slow start, says a UBS report, based on a study of app downloads at the Apple ( AAPL ) iOS store. The Go90 mobile video service — ad-supported and free to users — launched in late September, targeting millennials (adults ages 18 to 34) and gen Zers (teens). “Go90 appears to be off to a slow start, with its best showing around No. 300 when ranked against all apps in the iTunes store and No. 20 when ranked against other entertainment apps,” said the UBS report. Verizon’s Go90 is usually lumped with emerging over-the-top (OTT) video services, such as Dish Networks ’ ( DISH ) Sling, but the mobile app also competes for millennial attention with the likes of YouTube, Facebook ( FB ), Instagram and Snapchat, says UBS. “We believe Go90 will be hard-pressed to mount a meaningful challenge to mobile video and social networking leaders YouTube, Facebook, Instagram, Snapchat, Netflix ( NFLX ) and Hulu,” wrote UBS analyst John Hodulik in the report. “That said, Verizon is pulling various levers to ramp up interest in and usage of Go90, including more live and exclusive content and free data for Verizon Wireless customers.” One Verizon challenge is that Facebook and Alphabet ’s ( GOOGL ) YouTube garner the most mobile ad revenue. UBS studied downloads at Apple’s iOS store. “While downloads do not reflect app usage and engagement, we believe the two metrics are highly correlated in the medium to long term,” said the report. Verizon has not disclosed Go90 subscriber data. The service is not expected to be profitable for a few years. Go90 offers a mix of original Web TV series, live sports, concert streaming, prime-time TV and other short-form content. “Initial download trends suggest Go90 is doing better within the iPhone base relative to other entertainment applications, but appears to be lagging in the iPad market. This supports our view that the product is seen as a truly mobile service more geared to short-form content,” wrote Hodulik. Verizon stock was down a fraction in morning trading in the stock market today , above 52 and within range of a 51.30 buy point first touched Feb. 25. Verizon ranks No. 4 in the most recent IBD Big Cap 20. Image provided by Shutterstock . Scalper1 News
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