With video game distributors like PopCap, Big Fish Games, and Wild Tangent dominating the casual game market and digital warehouses like Steam holding the hardcore title, it seems like it might be difficult to break into the digital marketplace. Verizon, however, appears to have found a very good niche for them to step in to: a subscription style that allows users to play all they want without the need to make a purchase.

Over at VentureBeat, Dean Takahashi writes,

Jason Henderson, games product manager at Verizon, said in an interview that early feedback from test gamers has been overwhelming and that 20 – 40 percent are signing up for the service after trying it out. Those gamers are player up to 50 hours a month and are trying out 10 different games during that time. The games include casual titles such as Bejeweled as well as hardcore games such as Assassin’s Creed.

“We’re giving you the ability to access your games all in one place,” Henderson said. “Our model is all you can eat.”

The model will be powered by Exent’s GameTitanium distribution technology, a desktop PC application, which allows players to begin playing a game even before its download is completed (it will be interesting to see how hardcore games like Assassin’s Creed handle that.)

Unlike on-demand game streaming services, the Verizon offering will download games directly to the device the application runs on. In this way it will mimic the action of Steam’s digital distribution, but subscribers will not have to pay per game. Such a service will probably be extremely attractive to casual game players who like to spend a lot of time on a variety of games but have a limited budget. Most high energy casual game players can quickly burn holes in their wallets as they try to keep up with all the new offerings in their favorite hidden-object or mystery series.

Video media has already seen a revolution of this sort with subscription services like Netflix and on-demand cable, where viewers subscribe to the ability to watch movies and TV shows without having to purchase. The downfall that users face with these sorts of services, however, is that if they ever cancel their subscription they lose access to their favorite games on those services—Verizon could find themselves an additional revenue stream by enabling online purchases by customers who want permanent future access to games they enjoyed.

A subscription service from Verizon will probably also lead to giving users the ability to take their games with them without having to purchase multiple versions of the game. Download and play Plants vs. Zombies on the PC today—and tomorrow when they extend their app to the iPhone or other devices, take it with you on the road.

In another useful twist, the subscription service will include a social gaming aspect allowing users to keep profiles, set avatars, and collect badges. Consoles like X-Box Live and Valve’s Steam have benefited greatly from this sort of value added offering in the past. Even if the games don’t keep the users coming back time and time again, the community certainly can.

If you’d like to learn more about Verizon Games with GameTitanum, click here.