NAB: AT&T, Verizon Execs Discuss Content Challenges

While two top programming executives from the two larger telco TV providers agreed on the high value and the bright future for local programming at a panel this afternoon at the NAB show, neither provided any new detail or revealed plans on how to get the “content of the future.”

This content conundrum has been reached as AT&T Inc. and Verizon Communications Inc. claim they seek hyper-local content including high school sports and community-specific news to better compete against entrenched cable giants for new customers and make programming more relevant and compelling.

“One of the most difficult areas is acquiring customers when we run up against a provider with a strong hyper-local content,” admitted Terry Denson, vice-president of content strategy and acquisition for Verizon and its FiOS, TV-driven bundle, noting that archrival in the New York City area Cablevision Systems Inc. (http://www.cablevision.com) has its own news operation for residents of Long Island. “People in Long Island don’t care what’s happening in Connecticut.”

The up hill climb for Verizon? “Reflecting and having deep relationships with the community,” said Denson. “We’re in six of 10 of the top DMAs and each is very complex. “The two most important things in the future of content is where we are and what we love. That helps with hyper-localism.”

For its part, FiOS launched FiOS 1, a local channel in the Washington, D.C., region amid huge fanfare over a year ago, but has yet to add local channels, as was inferred, in other markets since. Asked where Verizon is with additional local channels, Denson would only say: “Production is not our core competency. We’re continuing to evaluate the situation.”

The original plan for FiOS 1 was for non-Verizon locals to shoot video of news and sports events of interest to specific communities, the best of which would air on the local channel as part of the FiOS overall programming package in that area.

Denson espoused the ancillary but very valuable benefits of doing local content.

“It creates viral marketing. When we show up, people ask where they can see the coverage and other questions about our service. [But] starting a local channel is hard, including licensing resources to them,” he said in apparent reference to video equipment, etc.

The Verizon exec reconfirmed that the company has brought back door-to-door sales and found it to be extremely effective, adding that positive word of mouth is a powerful sales and marketing weapon it continues to wield.

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