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Wednesday, December 7, 2011

Verizon and Cablevision Fighting Again

Even when I am not looking at the TV, the moment a certain music bed is played, I know that it is the Verizon FIOS ad regarding Cablevision's slow broadband speed. Then I look up to see a closeup of eyes moving in circles with the VO ..."Are you suffering from cable...vision." As an ad, it is memorable because of its unique music, copy, and video; but is it accurate? It seems it may have been true in March of this year but not anymore, not since Cablevision upgraded its plant. "According to Bloomberg, the suit states that the study was conducted before an upgrade of Cablevision plant boosted performance significantly. The Bethpage, N.Y.-based MSO said its average download speeds are more than 90% of advertised download speeds during peak hours and are above 100% of advertised speeds on a 24-hour basis." Yet, at this point, the ads are still running.

And while Verizon fights with one cable company, it has agreed to partner with three others as a result of a wireless transaction deal. At some point in the next three years, Comcast, Time Warner, and Bright House will be able to sell Verizon Wireless service packaged with a cable subscription.

Lastly, the fight between Verizon and Cablevision may not be as simple as it seems. It's not just about broadband speeds. Although MSG and AMC Networks are no longer owned by Cablevision, they do share a common family ownership. Lack of deals for the hi def channel of certain networks may have raised the notch for nastiness in this latest battle. And as the ad has successfully caught the consumer's attention, it simply spreads more salt into the wound between these two telecommunication giants. Who will win; perhaps, the damage is already done.