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Viodi View Newsletter - January 11th, 2006

Click here to learn more about Viodi's Local Content Workshop

Local Content @ OPASTCO

By Ken Pyle, [email protected], Managing Editor, Viodi View

I was fortunate to be part of the OPASTCO U workshop on local content. Unfortunately for them and for the attendees, Bill Murray of NRTC and Susie Weis of Inland Telephone had to drop out due to travel and illness, respectively. Fortunately, Rick Beuchel of Hood Canal Communications was there and gave some good words of wisdom as to what has worked for their small (1,100 access lines, 3,000 cable subscribers) operation. Additionally, Will Beattie of Ellijay Telephone, in an impromptu fashion, gave a great overview of the cool program Ellijay has.

One of the things that impresses and amazes me is the breadth of programming provided by independent telephone companies. Ellijay is creating children’s programming, documentaries, sports shows, a nightly half-hour newscast and music shows to name a few. As I have talked to telcos around the country and have reviewed the results of a survey on local content, I have found that telcos of all sizes are creating a diverse array of programming. The challenge is getting them to talk about the cool things they are doing.

Rick Beuchel is an example of telco modesty. When I first asked him to speak, he was somewhat reluctant and did not think they would have much to share. Well, he was wrong, as his company is doing a great deal with a small, but very capable and dedicated staff. Rick focused on the ad insertion part of their business and described how they are making money by offering video production as a way to get advertising business.

They contract out the advertising sales business to another firm, but they still manage to make money. They have been able to generate advertising by producing advertisements for local businesses. He suggested that it typically requires 4 hours of production for a 30 second spot and that they charge an advertiser $300 minimum for a production. He also said that they use the spots for advertising their own offerings (they don’t have to pay a split on those advertisements).

One of the more fun shows they did was a “cooking show” with a local restaurant. They produced the show live in someone’s living room in front of an audience. The biggest challenge was caused by the effects of the wine on the audience. He reported that a light stand was damaged and that it was a real challenge to remove the background noise. Even though they might have lost money on that production, they probably have made it up through the repeat advertising garnered from that restaurant.

He also showed examples of a music contest that they co-produced in conjunction with a local radio station. He suggested that it has been a challenge working with schools, as the kids churn so it is hard to keep continuity at the school level. One of the nifty things they do is have the schools electronically transfer files to their server (via FTP), which they then move over to their server that converts and schedules programming for their local channel. The amazing thing is that Hood Canal is accomplishing this with basically one person, their marketing person. This is truly an example of integrating local content into the marketing effort.

Ellijay Telephone, on the other hand, has a staff of 8 to 10 people working on their television station. Featuring professional sportscasters, trained meteorologists and experienced news people, Ellijay’s efforts lead the industry. They have been working on this effort for five years and they are finally to the point where it is a profitable.stand-alone business.

One of the things that they are doing, which more telcos should do, is that they simulcast their video offering on their DSL service. They have streaming servers set up in their central offices, such that customers who don’t have access to Ellijay’s Hybrid Fiber Coax system can still see their local programming. What a great way to create a more sticky DSL offering.

They are also about leverage. For instance, when their Community Relations person goes out into the community, they bring a camera. This is very important because their news casts, emphasize positive things going on in the community, instead of the normal sensationalistic newscasts of most television stations.

Finally, a friend from a telco came up to me between sessions and told me of a clever thing they are doing with a local Church. This Church, which has only about 500 members, produces sports programming from the local schools. In return, this telco airs the Church’s services. The Church made the investment in equipment and training for members of their congregation to create a unique outreach effort. The programming has proved so popular that it is carried on several other cable systems in adjacent towns.

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