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Commentary
Is Verizon's FiOS Lying Again?
The telco retreats from its commitment to offer 150 high-def channels in 2008.
By
Swanni
 
Washington, D.C. (July 20, 2008) -- On November 1, 2007, Verizon's FiOS TV issued a press release stating that it would increase its high-def lineup to 150 channels in 2008.

"
Verizon FiOS TV customers will get even more of the High-Definition content they love as Verizon today announced plans for a fivefold increase in the number of HD channels, to 150 channels," the release stated.

However, Verizon FiOS Vice President Terry Denson was recently asked by Multichannel News if his company was standing by its commitment.

"
The important thing is that we expect to be the categorical leader," Denson said. "We are on our way. We haven’t arrived yet and we are still negotiating some agreements, which is why I want to shy away from mentioning specific channels."

Denson added: "A lot has been made of actual channel counts but we don’t obsess over channel counts."

Oh, really?

Well, Verizon FiOS seemed obsessed with "channel counts" last November when it issued that press release. In fact, the title of the release was:


"Verizon Plans Fivefold Increase in HD Channels on FiOS TV in 2008" (The telco had roughly 30 high-def channels at that time.)


Verizon stretches the truth again...

But with just slightly more than five months left in the year, suddenly Verizon doesn't think that "channel counts" matter.

Could it be because it's not going to offer 150 HD channels?

Could it be that Verizon never intended to offer 150 HD channels, but merely wanted to issue a press release saying that it would so it would keep customers from switching to DIRECTV or another TV provider? (The press release -- and the 150 HD channel promise -- was featured in hundreds of print publications and web sites.)

Could it be that the '150 HD channel' boast was a lie from the start?

Harsh words, you might say. But Verizon's FiOS, which now offers less than 50 HD channels in most markets, has a long history of saying one thing and doing another. For instance:

* Verizon issued a statement in February that it was "hopefully finishing" negotiations to bring Major League Baseball's 'Extra Innings' package to its FiOS TV subscribers. At the time, many FiOS baseball fans were trying to decide whether to stay with FiOS or switch to a TV provider that would offer the baseball package.

As of today, Verizon still hasn't added the baseball package. (Although there have been rumors it will be added in Verizon's promised upcoming channel expansion; the telco says it's adding 25 HD channels this summer.)

* Verizon last year included a free Sharp LCD HDTV in a promotional offer for FiOS. However, after signing up a large number of new subscribers in the promotional offer, the telco said it suddenly ran out of free Sharp TVs. Dow Jones reports that Verizon instead offered new customers a less attractive Magnavox set or a $200 Best Buy gift card as an alternative.

* Verizon ran a TV ad campaign earlier this year saying that CNET.com stated that its FiOS TV service is "near flawless." However, as it turns out, CNET actually never said that; the technology web site published an article saying that it was important for Verizon to offer a "near flawless" TV experience, given the intense competition in the TV category.

In our view, the telco is exhibiting a 'fast and loose" approach to the facts when promoting High-Definition TV and related TV services. We realize that as a relative newcomer to the field, Verizon must be aggressive in marketing its service as it tries to peel away longtime cable and satellite subscribers.

However, there's a line between aggressive and misleading and Verizon seems all too willing to cross that line.

In his final comments to Multichannel News, Denson tried to dismiss the '150 HD channel' issue by saying that Verizon would increase its HD On Demand menu this year.

"It is a complicated message to effectively impart to a potential consumer," Denson said. "It is a lot easier for a consumer to say, 'This provider has 150 channels and this one has 100 channels, so I’ll choose the one with 150 channels,' than the contemplative approach of choosing a provider with 100 HD channels and 500 HD programs available at any one time on demand."

150 HD channels. 100 HD channels. At this point, whatever Verizon says, it can't be believed.

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Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.

Click TVPredictions.com to read more news and features on TV technology. 

 
 
 
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