Verizon Doesn't Get HDTV

Verizon entered the TV business in a big way in 2006 claiming that they built a totally 21st century system bringing unlimited bandwidth and services to your home. They were the first system of any kind to bring fiber right into the home. I couldn’t wait until they arrived in our area as they would be competition to Comcast and help keep the yearly rate increases down. As I have noted previously, they appeared to deliver on their promises and provided a great TV viewing experience with excellent picture quality on both standard def and high def content and excellent broadband speeds. They also were the leader in HD offering more HD channels than Comcast or DIRECTV in our area. With all that virtually “unlimited” bandwidth, one would have thought that that would continue and with it an ever growing customer base. Well, guess what, it hasn’t materialized. What’s even worse, Verizon’s recent actions or should I say inaction, will only work to slow their rate of growth to a trickle or kill them off completely as a TV provider.

Yes, Verizon has totally blown it. The folks over at DIRECTV and Dish Network have finally come to understand what us HD fans have known for years and that is that HD is the future and have been working hard to increase their capacity to add as much HD as possible to distinguish them for cable. Just in time too with the spate of new HD channels coming on line such as CNN-HD, TBS-HD, USA-HD, etc. The list of available channels is very impressive.

Cable, although late to the game, has finally gotten the message and realizes that it must have more and more HD to be able to compete with DBS. By more and more HD, I don’t mean HD-VOD but actual channels. HD-VOD was used as an argument that they had more HD offerings when they didn’t have the space to add actual channels. It was essentially a stop gap measure to put in place until they increased their capacity. They are now doing so. Obviously, that will vary from market to market, but we are seeing it happen now in response to the movement on the part of DIRECTV and Dish.

What is Verizon doing? NOTHING!

It turns out they they didn’t have the capacity they claimed. Far from it. While they do have the ability to add that capacity in a manner that is much easier and less costly than cable can, they didn’t see the need to add it at the outset and are now moving slowly to do so. Why? I don’t know. Perhaps they just don’t want to spend the money. Maybe their whole operation is costing them more money than they thought and they have to cut back? Maybe it was just pure stupidity and short sightedness.

In this case, it will be a fatal decision regardless of the reason or reasons. Verizon’s refusal to add TBS-HD in time for the baseball playoffs was a terrible decision and cost them many subscribers in the Philadelphia and Boston markets that went back to either Comcast or DIRECTV. Guess who was ready to take back their former subscribers? Guess who had the foresight to have the channels that people wanted? It wasn’t Verizon! Even worse, it just doesn’t seem that Verizon cares about sports. While they have Comcast Sportsnet in HD in the Philadelphia area, they do not have Comcast Sportsnet Mid Atlantic in HD in the Washington DC/Northern Virginai market. Gee, guess who just added it? Yep, DIRECTV. The same is true in the North Jersey/ New York market with no MSG-HD or SNY-HD. It also took them forever to add NESN-HD in New England.

What do we hear from Verizon in response to the challenges laid down by the DBS provider and cable? Essentially silence until this week when Shawn Strickland is quoted in the trade journal Multichannel News that they will not be adding more HD channels until the Spring of 2008 and are focusing on HD-VOD and gaming. Note that there was no commitment to add numerous HD channels; just more HD content. That could mean only a handful of HD channels and a lot of HD-VOD. There was no effort to state exactly what their intentions are. No statement that we will match the number of HD channels of their competition and with better quality. NO, just more lip service and a commitment to add gaming. Gaming! Who really cares? It is HD we want, first and foremost and at high quality. HD is the future of TV and what the Verizon system seemed designed to deliver. I guess not.

Frankly, the people at Verizon responsble for this fiasco should be called on the carpet for their stupidity as it will really hurt the fortunes of the company as a whole. The upcoming holiday season will be big for HD. From millions of sets to HD-DVD and Blu-Ray. When all those millions of households bring their sets home and have to decide which provider to choose, where do you think they will go, to the provider that has 100 HD channels in additon to their locals in HD or one that has maybe 30? Considering that the early reports are that the MPEG-4 channels on Directv look very good, Verizon has just lost out on millions of potential customers that they will likely never get back.

What will be Verizon’s response? Please come back to us! While we only have 30 channels, they do look a smidge better? That will really be an effective sales pitch, no? Verizon may say gee, wait till spring and we will have some more channels in HD. We don’t know how many or even which ones but we will add some. Maybe. Even if we don’t, we will have some cool new gaming features for you to enjoy. Wow, that will really be effective! By Spring? I really doubt that. What does that really mean? March or June? Is it really Spring of the fall or winter. What is being done to “make it so”, what kind of a commitment is there? From Verizon we have heard NOTHING!

Until they put their cards on the table, I can only assume that they don’t really care about HD and don’t have a clue as to how the business works. Verizon could have been a real threat to cable and DBS but have really fumbled it away with inept management and planning. If they don’t care about HD or don’t care enough to add the HD we want, why should we care about them? Unless I hear more from Verizon with actual definitve plans and soon, real soon, I am going back to Comcast. The ball is in your court, Verizon.

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