As telephone companies move into the territory traditionally occupied by cable TV operators, local content is proving to be a differentiator for attracting and retaining customers.
According to the Wall Street Journal, Verizon Communications plans to launch a TV channel in New York City with local news and information to compete with the local news channels offered by Cablevision Systems and Time Warner Cable:
Both cable and phone companies are vigorously marketing features such as super-fast Web access and on-demand movies. But investing in local-TV programming, replete with news of school closings and community politics, helps distinguish the companies from rivals to boost customer loyalty — or steal away subscribers
As the pipes become a commodity, the value lies in what flows through them. Infrastructure companies become media companies.
The complete article is here:
- Wall Street Journal: Local TV Is New Weapon (subscription required)