Time Warner's NY1 Squares Off Against Verizon FiOS Threat

Time Warner Cable has begun running spots on NY1--its local news station in New York City--that serve as a preemptive strike against Verizon's FiOS. The on-air promos tout NY1 programming, such as red-carpet coverage of last night's Tony Awards, and finish with a "Not on FiOS" tag.

NY1 News is a popular channel in the city for weather and information and is only available to cable subscribers. Time Warner Cable (TWC) hopes the 15-year-old network's popularity will help prevent subscribers from switching to FiOS, once the telco TV service makes its NYC debut, expected later this year.

So does Cablevision, which carries the TWC-owned network in Brooklyn and the Bronx.

Verizon is waiting for government clearance allowing it to offer the service in parts of the city's five boroughs. The company says it plans to break "the monopoly of legacy cable TV providers."

Factors other than the availability of NY1 (or sister Spanish-language NY1 Noticias) will affect any switching decision to FiOS. Verizon has been known to compete aggressively to gain subscribers on price and with special offers, such as a free HDTV or Samsung digital camera. TWC, Cablevision and Verizon all pitch various bundles with phone and broadband offerings.

advertisement

advertisement

In the wake of FiOS receiving approval May 27 from one New York City government body, NY1 began airing three separate promos carrying the "Not on FiOS" message.

A representative for NY1 said the tagline is "our way of keeping our audience informed."

A Verizon representative suggested that FiOS would be able to overcome any viewer dismay about losing NY1. "What customers find is FiOS TV is really a superior service," she said. "Customers will look for what's the best service for them." (FiOS has a widget option that provides local weather and traffic information.)

Available to more than 2.5 million customers, TWC has a large presence in New York City, including a Manhattan stronghold, with Cablevision operating in the Bronx and the majority of Brooklyn.

Cablevision already competes with FiOS in some suburbs around New York, where it offers the NY1-style News 12. It's been running similar anti-FiOS messages regarding News 12 with the tag: "Only on cable. Not on phone company TV ....or anywhere else."

A Cablevision representative wrote in an e-mail that News 12 "has been an important competitive differentiator."

Before it turned to spots taking aim at FiOS, TWC ran promos--and still does--noting that NY1 is not available on satellite competitors, DirecTV and Dish Network.

But in some ways, FiOS appears to be a bigger threat, since it could peel away a significant amount of TWC subscribers in Manhattan--where crowded living often precludes satellite use.

Manhattan is a key market for TWC, since its upscale residents drive significant revenues with so many that are inclined to pay more for an array of advanced services such as HD DVRs and premium channels.

Early on, top executives with both TWC and Cablevision dismissed FiOS (and AT&T's telco TV service) as bit players, but they have since changed their tune and acknowledged the potential threat. Verizon, about three years in, has over 1.2 million customers nationwide and plans to have 4 million by 2010.

Cablevision has 3.1 million. TWC is the country's second-largest cable operator with 13.3 million TV customers.

Next story loading loading..