The real winner in this: Adobe, as I assume Verizon would use Flash Lite
An agreement would allow Verizon's customers to view some of the most avidly watched entertainment on the Internet. That could advance the long-expected convergence of video and cellphones. It could also, at least temporarily, give Verizon a marketing edge over its rivals in the wireless and cable industries, furthering the company's efforts to expand into Internet and entertainment services.
Source: Verizon, YouTube Aim To Bring Web Videos To Cellphones, TV - WSJ.com
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