Verizon will launch an ad-supported mobile video streaming service dubbed G090. The service will initially be available to select Verizon customers only but will be available to all users by the end of September this year.

With G090, Verizon will be targeting young viewers between the age of 18 and 34 years. Marni M. Walden, the president of product innovation and new business at Verizon, said that about 70 percent of this age group views videos on mobile first. Such a big percentage of mobile video viewers offer big opportunities for Verizon.

G090 will have a good mix of content including live events, original web series and prime-time television. Popular TV shows from a number of channels including ESPN, Food Network, Comedy Central, Discovery and NFL Network will be available to view via G090.

The mobile video streaming service will feature live concerts and NFL games also. The service may start initially for mobile products; however, some market observers believe that it may also extent to traditional television in the near term.

Verizon will offer G090 for free. The company will make money from data consumption and supported ads.

Tim Farrar, a telecommunication industry expert, suggests that Verizon's G090 will be up against the big-wigs of the Internet advertising market such as Facebook and Google. The big players may wait to see how many viewers Verizon is able to capture before taking any steps.

"Pretty much without exception telecom operators have not been successful as third parties in exploiting the Internet access service, whether it's video or anything else," says Farrar. "What percentage of people's app viewing is going to be over a Verizon app versus YouTube or Facebook...That's the biggest uncertainty."

Verizon's competitor, AT&T, has revealed that it is working on mobile video services. Similarly, T-Mobile and Sprint have also said that they will be closely watching the efforts of their rivals in the mobile video streaming market.

Craig Moffett, an analyst with MoffettNathanson, says that Verizon's mobile video strategy is promising. Currently, the carrier is the only one that offer advertisers customers' location-based data.

Reports suggest that Verizon is holding talks with several brands and advertisers regarding sponsorship of content, as well as creation of original content.

Photo: Mike Mozart | Flickr