Dreamworks, which acquired AwesomenessTV in 2013, is selling a 25% stake to Verizon. Awesomeness is a MCN, primarily known for their popular YouTube channels. Notably, Verizon already has a deal in place for Awesomeness to produce content for their G90 mobile video service. This comes on the heels of an announcement late last year that Machinima, another MCN, will also be producing paid content for G90.
We believe Verizon sees the writing on the wall as audiences are shifting online and moving away from traditional tv programming. They want to position themselves to be a part of the next-generation of media consumption. Building up G90 to be a significant competitor in the online video arena is part of those efforts. Consumers used to justify a cable TV subscription because they couldn't find their favorite shows elsewhere. Verizon wants the same thing to be true about shows on its G90 service, helping to justify a Verizon mobile phone account.
