Source
Both companies looking at bundling service packages
MATT GRISWOLD
Herald Staff Writer
MANATEE - There's still some question about how Verizon Communication Inc.'s TV service will look and feel, and how much it will cost. But its presence will ensure the prompt release of the newest in TV technology locally as Verizon goes head to head for subscribers with Bright House Networks in the future.
Verizon TV could be available in portions of Manatee County within six months.
The fight for cable subscribers will also likely insulate consumers from frequent or expensive rate hikes, said Bruce Leichtman, president of Durham, N.C.-based Leichtman Research Group Inc., which tracks media markets.
"What both of these companies want to do is bundle their services," Leichtman said. "You might see some nice package bundles and short-term offers, but you're not going to see the price of cable go down. You're also not going to see it go up as much as usual."
"We're not talking about 12 brands of toilet tissue. We're talking about two brands of video becoming three."
He was referring to Bright House, Manatee County's dominant cable provider, as well as competition from satellite providers like DirecTV and DISH Network.
The real winners will be the tech junkies - those who crave interactive technology like video on demand, digital video recorders and high-definition programming.
It's still unclear whether FiOS TV will cost more or less than comparable service from Bright House. Verizon officials say they're selling value, but that prices will be competitive to other providers in the marketplace.
Like Bright House, Verizon plans to offer both analog service, which allows consumers to just connect their TVs with a cable outlet in the wall, and digital services, which will require a set-top box.
Among some of the user-friendly features of FiOS TV will be the channel grouping of various programs by genre. For example, the Fox News Channel, CNN and MSNBC will be grouped together, while sports channels like ESPN, NBA TV and NFL Network will be similarly grouped.
Verizon spokesman Bob Elek said the basic digital package will offer between 175 and 220 channels. There will be 1,800-2,000 video-on-demand titles available. Also, Elek said, Verizon will allow customers to order tailor-made programming.
"Here's where the system differentiates," he said. "This network is so powerful that individual customers can add additional things on an a la carte basis. Cable typically needs about 10 percent of the market to desire a particular channel before it can offer it because of space limitations.
"We don't have that issue."
Verizon's FiOS TV will launch with DVR capabilities as well as 20 high-definition channels.
Despite FiOS' features, Leichtman isn't convinced it can be a significant upgrade from what's already available to cable customers.
"There's not much room for a vastly higher-room product," he said. "The improvement that cable and satellite companies have made is tremendous. I don't think they can be significantly superior."
Verizon superiority is not something Bright House officials are worried about either, said Bright House spokesman Dan Ballister.
"We've competed effectively with other providers in other markets," he said. "Our company has consistently been first or second to market with all of these technologies that people care about. That's a real positive for us."
Both companies will race to offer customers a discounted bundle of TV, high-speed Internet and phone service. Bright House has the immediate advantage because it already has all three services available.
One thing, Leichtman said, that could give Verizon a leg up in the future is if the company finds a way to effectively bundle in Verizon Wireless cell phone service as well.
"They call it the grand slam," Leichtman said. "That's the missed opportunity - bundling wireless as well."
Ballister said Bright House, too, will continue to develop and offer new technologies to the marketplace.
"Most people realize that competition from other providers obviously creates more customer choice and enhances customers service," he said. "Companies that want to continue to keep a good relationship with customers will also keep prices competitive.
"We'll continue to provide new products and excellent service to all of Manatee County."
Both companies looking at bundling service packages
MATT GRISWOLD
Herald Staff Writer
MANATEE - There's still some question about how Verizon Communication Inc.'s TV service will look and feel, and how much it will cost. But its presence will ensure the prompt release of the newest in TV technology locally as Verizon goes head to head for subscribers with Bright House Networks in the future.
Verizon TV could be available in portions of Manatee County within six months.
The fight for cable subscribers will also likely insulate consumers from frequent or expensive rate hikes, said Bruce Leichtman, president of Durham, N.C.-based Leichtman Research Group Inc., which tracks media markets.
"What both of these companies want to do is bundle their services," Leichtman said. "You might see some nice package bundles and short-term offers, but you're not going to see the price of cable go down. You're also not going to see it go up as much as usual."
"We're not talking about 12 brands of toilet tissue. We're talking about two brands of video becoming three."
He was referring to Bright House, Manatee County's dominant cable provider, as well as competition from satellite providers like DirecTV and DISH Network.
The real winners will be the tech junkies - those who crave interactive technology like video on demand, digital video recorders and high-definition programming.
It's still unclear whether FiOS TV will cost more or less than comparable service from Bright House. Verizon officials say they're selling value, but that prices will be competitive to other providers in the marketplace.
Like Bright House, Verizon plans to offer both analog service, which allows consumers to just connect their TVs with a cable outlet in the wall, and digital services, which will require a set-top box.
Among some of the user-friendly features of FiOS TV will be the channel grouping of various programs by genre. For example, the Fox News Channel, CNN and MSNBC will be grouped together, while sports channels like ESPN, NBA TV and NFL Network will be similarly grouped.
Verizon spokesman Bob Elek said the basic digital package will offer between 175 and 220 channels. There will be 1,800-2,000 video-on-demand titles available. Also, Elek said, Verizon will allow customers to order tailor-made programming.
"Here's where the system differentiates," he said. "This network is so powerful that individual customers can add additional things on an a la carte basis. Cable typically needs about 10 percent of the market to desire a particular channel before it can offer it because of space limitations.
"We don't have that issue."
Verizon's FiOS TV will launch with DVR capabilities as well as 20 high-definition channels.
Despite FiOS' features, Leichtman isn't convinced it can be a significant upgrade from what's already available to cable customers.
"There's not much room for a vastly higher-room product," he said. "The improvement that cable and satellite companies have made is tremendous. I don't think they can be significantly superior."
Verizon superiority is not something Bright House officials are worried about either, said Bright House spokesman Dan Ballister.
"We've competed effectively with other providers in other markets," he said. "Our company has consistently been first or second to market with all of these technologies that people care about. That's a real positive for us."
Both companies will race to offer customers a discounted bundle of TV, high-speed Internet and phone service. Bright House has the immediate advantage because it already has all three services available.
One thing, Leichtman said, that could give Verizon a leg up in the future is if the company finds a way to effectively bundle in Verizon Wireless cell phone service as well.
"They call it the grand slam," Leichtman said. "That's the missed opportunity - bundling wireless as well."
Ballister said Bright House, too, will continue to develop and offer new technologies to the marketplace.
"Most people realize that competition from other providers obviously creates more customer choice and enhances customers service," he said. "Companies that want to continue to keep a good relationship with customers will also keep prices competitive.
"We'll continue to provide new products and excellent service to all of Manatee County."
