Hearst Television Goes Deep on Hyper Local Streaming Content

I have great respect for the mission of local TV, which is to make money, but also to inform and connect the communities that stations serve. This instrument can teach, after all, So with this crazy moment of growth and evolution for TV, I've been very keen to watch the changes in broadcast TV at the national and local levels. Hearst Television is one of the biggest and most well run groups in the country. They have the independence and

the resources to do interesting experiments. They're doing that now with the free streaming platform launched last year called very Local. It showcases local newscasts from Hearst twenty six TV stations. It also has hyperlocal original series that are designed to be connected tissue for viewers that live in the region. They can go check out that amazing sandwich shop or

day spa or nonprofit organization featured in a show. Fitz Gerald explains in detail Urst's approach to growing very Local on the Bass track, referring to free ad supported streaming TV channels that are already changing the streaming marketplace significantly. So we've got a lot of talk about local TV coming right up after this break. Andrew Fitzgerald, Senior vice president of streaming video Services for Her Television, thank you for joining me today. It's my pleasure. I'm happy to

be here. So I wanted to talk to you about Her Television's streaming local streaming initiative that is appropriately called very Local. Uh. This was a big initiative that you launched last you know, late summer fallish of and as we speak here today on the cusp of Labor Day weekend here Friday afternoon, thank you, doubly thank you for making the time you are. You just announced this week an expansion, more shows, more content, kind of a slightly

wider scope across your twenty six. Did I get it right? That's all right? Now? That is old school. That is an old school syndication reporter talking. Uh twenty six markets. You know, such an interesting canvas for you to work with and to do local programming. And I was intrigued last year when you announced it, and it's sort of on my to do list, and when I saw last week, I was like, I'm gonna we're going to talk about this.

So I guess I'll start by asking you, after you launched it last year, what are you seeing in the market. What what are the encouraging signs that you're seeing that allowed you to expand the slate absolutely, so, Very Local is Herst Television's entry into the streaming landscape. You know, at the core of our business is local broadcasting. We produce award winning and top rated newscasts in all of

our twenty markets. UM. The really our goal with Very Local is we are trying to make that incredible local news content available to consumers via streaming. UM. As we have looked at the landscape when we launched the product, there were two trends we thought were really interesting. The

first was the growth in broadband only consumers. And as that population continues to grow, and indeed as that growth accelerates in markets around the United States, there are more and more consumers that don't have easy access to local broadcast news. And so at its core our goal was Very Local was to connect those folks with our local

broadcast news. The second interesting trend has been we sort of saw the beginnings of it the project inception has been the growth and demand for a VOD services UM. That's been a big story across media this year for sure. Yeah, and that is and so you know, very local is it it's an avid completely free app. Were one of the apps in the Roku store that has free on

the on the icon itself. Want to want to make sure people know it's uh, it's free to use, it's an it's eye catching, no question, free and sale always gets UM and uh, and so we are a free to use a bad platform. We are absolutely seeing that that sort of growth and consumer demand around free ad supported streaming services. We are absolutely seeing that in our metrics in the Very Local app UM and so you know, at its at its core, we are connecting consumers with

local news via streaming UM. However, a big part of the Very Local initiative for us is we wanted to differentiate the offering in the marketplace with more local content. UM. And whether that is a consumer who is in a broadbent only home that may not have a connection to a broadcast news station, yet new local content gives us an opportunity to connect with that consumer, or if it's a consumer that does have access to the linear signal,

is a cable subscriber does have a broadcast antenna. UM we wanted to be able to offer more local content for them to connect with um AND and so that that has been a big part of the Very Local initiative and a big part of what we're working on for around Labor Day weekend is kind of kind of showing off the all of the incredible original content we've

been producing over the course of this last year. Let me ask you one question on the on the purely on the local newscast side, are those live stream simulcasts with actual news podcasts or they are they making it available in an on demand format or both? Great question. So the newscasts are available on demand um AND, they are available in our fast streams, so in an in

an as live format, they are not simulcast. So we we continue to believe that cable subscriptions are valuable and UM AND to recognize the value of people who are paying for a cable subscription. UM. We actually have time shifted our newscasts in the fast channel, so it's uh, you know, a slight time delay from when it would have been live, but the news is available there for free. So is it like an hour two hours after a telecaster?

It's variable, but yeah, in that range. If I go on Very Local, can I watch any one of your twenty market newscasts? Will they be available? I can? I can check out different cities or is it kind of geo located to where I to where I'm logging on from? So it is absolutely possible to watch newscasts from any market. Uh. The way the app is designed, we UM we do geolocate where you are based, and we try to offer you the local experience that is going to make the

most sense for you. So if you were in Sacramento, California, for example, we would offer you the Very Locals uh Sacramento experience, which would feature newscasts from k c R a UM. But you could in the settings menu very easily change your location to see other locations around the US. Do you see a lot of do you see people

in different areas shopping around to look at newscasts? A little a little bit, but most of the viewership, but mostly once people land in a in a market view that becomes their home screen and they just default back to that. In any way, do you bundle advertising with the linear stream and and those like is it is it a bundled player or is the app and that stream? Is that all sold discreetly on advertising? Right now, we're

still experimenting with the right ways to connect advertisers with consumers. UM. Very local does include advertising from our hearst any screen product which is a locally sold product for local advertisers to buy streaming inventory. Um. And so a fair number of those ads make their way through to the very Local platform. Uh. And then in addition, UM, we are in the in the programmatic marketplace like many folks in

the fast universe. That's it. Yeah, it's a it's a it's a it's a crowded field now and I'm curious. So that tells us that there's going to be more innovatorations in new lanes carved out within that, which is

kind of interesting to watch watch happen. UM. So that's your news content talk about because you have a fair number of originals, a lot of lifestyle stuff, a lot of obviously local color, which I think, you know, I I also feel as I love that there's not a lot of that, especially I'm in a big market like l A. It's kind of hard, but I know, anything sub the top ten, I would think there's so much opportunity to reach people that otherwise previously couldn't have been

on linear TV. But in the you know, with the sort of the more modest playing field, you could and I'm sure you all are thinking incubating not only content and story and talent, but also advertisers. I think there is enormous opportunity, uh, outside of the top ten markets, and that's one of the things that really fun about her television footprint. UM So, we we don't have a

ton of top ten markets. We've got Boston, but we have a number of markets around the US, and indeed most of our footprint our cities with a real palpable creative and entrepreneurial energy and cities that at the national level you don't see as many stories covering. And of course at the local level, we we put all of our effort into into covering these places. Um and what very local has given us an opportunity to do is

to begin to build programs that celebrate these places. Uh. And so the way that we've approached this, we're really thinking with the consumer in mind. We're thinking about content that entertains but also has pretty high utility. UM. So, if you live in a market featured by one of our local originals, we want you to be entertained, but also learn about the place that you live, learn things to do, places to go, interesting restaurants or chefs, etcetera.

So our our formats are built to look and feel familiar to someone who is watching unscripted cable. We have travel formats, cooking formats, uh that if you, if you are a consumer of that content on cable, this is gonna this is gonna feel very familiar to you, except it is going to be through a lens on a place that you likely wouldn't see normally on a national cable channel. Um. And in many cases, it will be

the town in which you live. So, for example, we have a cooking competition show called Plate at Pittsburgh in which two Pittsburgh chefs compete to see who can make the best dish and also the most Pittsburgh ish. And those two chefs are chefs in Pittsburgh. So if you're watching Plated Pittsburgh in that market, yes, it is a fun, unscripted cooking competition show, just like something you might see on cable. However, you could also make a reservation at

any of those restaurants tonight tomorrow. Uh. And that's that's sort of level of utility and access back to the community. We think it is really valuable and helps these programs resume. And now do you have the deal in place with um Open Table or whatever to so that so that they can click right through the remote control or whatever to make that to make that reservation or is that next year? That's that's probably next year. But Open Table,

if you're listening, please give me a call. That sounds great, but it does seem like, you know, and especially now now we're really going to get into wonky wonky territory. But as we get into a t s C three point oh, that that kind of functionality should be pretty ready, you know, should be much more easily handled by broadcasters.

If I understand all of that, right, I know, you know, absolutely, yeah, So I think the sort of promised interactivity that we have been we have been looking for in the future of broadcasting. Uh. Certainly, I think my entire career UM and and probably predating my career. UM, it feels like we are in the world that that is now happening.

UM and UH certainly opportunities with a t SC three dot OU and in in my world and streaming, UH, we're already seeing the kind of beginnings of interactivity in the streaming space, even even just um sort of simple models of uh the sort of higher CPM interactive advertising that runs in video on demand services. UM, that that kind of offering to the consumer where they they're they're having a little bit more of a dialogue between them

and the and the big screen. UM. I think there's a there's an enormous opportunity, and especially as our focus is deepening a relationship and deepening engagement with local consumers, I think there's a there's a ton of opportunity there for us. We know that there's so much investment going on in in that area of digital tools that enable

that kind of conversation. That's what we're definitely here. From the investment side, we're always focused on what's the next studio and people are saying actually infrastructure, ticketing apps or the hot thing. But it makes sense. You know, you've got to you've got to facilitate it and we're all spoiled now we want it just we wanted a couple of clicks and oh, there it is. You know. Um, let me ask, so do you own? Does First own

all the content? Is there? Is there any kind of licensing going on or do you I'm guessing you produce

it using a lot of the station resources. So there's a there's a small amount of content that is licensed on Very Local, but the vast majority of what you see on Very Local UH is produced and owned by Hearst UM and this is really these are our programs that we have developed and defined specifically to highlight these markets and UH and you know, put put a lot of work into what is what is the best way to produce a show that is going to reflect this

sitting don't surf around. We'll be right back with more on the future of local TV with Hearst Televisions Andrew Fitzgerald. And we're back with more from Hearst Televisions. Andrew Gerald. First has very well established Esquire, Costropolitan, you know magazines that have also a lot of content resources. Is there

any Is there any cross pollination there? Absolutely? Um, So on Very Local, we have a few properties that are built by Herst magazine, so uh, the Delish food brand, we have um some shows under the Delicio food brand.

We actually have a show from Esquire called In Transit, which is a celebrity interview show hosted by Dave Holmes in which he's um interviewing celebrities in an airport bar as they travel to different destinations around America, talking about genius, that's a career, their career, and also where they're where they're headed to. HM, well that's cool. Who um for the content that airs on Very Local? Who sells that? Does? Do you have a dedicated sales team or is the

advertising sold by the individual station groups? So it's the advertising and Very Local right now is a mix of some locally sold through our Hearst any screen product and then some programmatic which is run by a team that handles our programmatic sales at large. It would seem intuitively that it's a great way to bring in advertisers that wouldn't maybe yet have the heft to be on linear at this stage. Is that Is that a fair assessment that you can it allows you to bring in people

that it wouldn't otherwise be on the air. Well certainly for our so our first any screen product predates Very Local by I think about two years, and the idea there was to offer local advertisers the opportunity to be in the streaming landscape. Um. And so you know, through UH going out in the marketplace and finding the right

inventory matches for local advertisers goals um. And now with very Local, we we are helping to connect those same local advertisers with audience consuming her television content um and

we expect that to continue to increase um. And so it is I think the the opportunity right now is with our existing advertising relationships in local markets, how do we help bring those advertisers into this whole new world of advertising, whether whether that is within Very Local expanding out through streaming via her stanny screen Yah mhm um.

What do you think? What do you find in terms of audience profile, the difference in the audience profile of people that watch tune into Very Local, whether it's the original content or a newscast versus what you'll what you'd see on the linear mothership station in the market. So very Local audience is pretty much as mass market as our linear stations, UM, with with perhaps a slightly younger event. Um, not surprising, but the but yeah, it is to be

in the broadcast industry. Is your your market is very much general general mass market and your your affinity area, your interest graph is people care about the place that they live. Do you think about how you program very local so as to not in any way, you know, cannibalize a line linear audience or is that not a concern?

Do you feel like you fish in different ponds in terms of in terms of the content that runs on Very Local and the content available you know that might be available say on the weekend on one of on one of the stations. Um, there there is not outside of the newscasts and other station produced uh, other stations produced content. Um, there is not a ton of overlap between what is airing a linear channel and what is

airing and very local. Um. You know, the linear channel, in addition to our locally produced content, includes content from our syndication partners, content from our our network partners. Um, none of that is appearing in Very Local and so and then on the very local side, it's very it's actually quite rare for us to take original content that has been produced for Very Local and run that on

the linear side. UM. Part of our Labor Day UH special, the More to Explore special is about highlighting these original shows that are exclusive to our streaming platform for our linear audiences. UM. We we think about for the audiences of the two platforms. On streaming, we're really looking at either an audience of folks that just are not consuming linear channels and so we're we're sort of offering them the local news and more. And then four audiences that

are consuming content on our existing linear channel. They're they're already in that market. We're really viewing Very Local as an opportunity for them to deepen their engagement with that local station. UM, and so things like the value proposition for that consumer is these television stations produce absolutely incredible

local news specials UM. And you know most just about all of our stations are are winning awards for their UH Deeper Chronicle investigations, which are half hour specials which air once or a couple of times on linear. With a Very Local platform, we can host those in perpetuity

as video on demand assets. I see them, you know, you see especially like every year in the Peabody finalists and winners, you see you see these great these things that sound just on the surface to sound like amazing local investigations and they would air once or me and maybe be rerun a week later and then and that there is a lot and I will give hers to

shout out. It is one of just you can tell that it's it's one of the few groups that are still really investing in sort of deep local investigative work. And that is you know, it's it's a shame to see that, to see that dwindling. So shout out to

Hers for continuing that investment. And then it it makes so much sense for you too, and and pro tip around Peabodies that you could package and say, you know, because it's really like a lot of people are seeing these things and they sound you know, they sound like

really impactful, impactful TV. Yeah. Absolutely, And I think the you know, for for us to be able to even better highlight that journalism that's happening in our in our local markets is that is as as much fun as we're having making original content that is travel shows and cooking shows. Um, it is really so core to very local is our delute to better highlight that local news content and increase the potential audience and the amount of

time that that that content is accessible to people. Much of the production that is happening within Very Local is is actually independent of stations. Uh. And so we we have been for many of the shows were producing. We're operating in a in a new landscape. Interesting. Yeah, one of the many one of the many arenas that is adjusting to a lot you know, both more global and more hyper hyperlocal at the same time. Right. Uh, Andrew,

I so appreciate, I so appreciate your time. My last question for you might be my toughest, but but but let me ask you at this point, is Very Local are you in a cash flow positive situation or are you still in building mode? Uh? We're still in building mode. Um. But we are so encouraged by the growth of the product and the connection that we're building with audiences. UM. So we're we're feeling very bullish on the product, truly. Andrew really appreciate. Uh. I love local broadcasting. I am

really interested to watch its future. And I really appreciate you letting me lob questions at you about your effort. It's really interesting, and I think folks, even well outside of her market should go check out Very Local because I can tell you're putting a lot into it. If if I can, if I can give the plug. The Very Local app is available in any market in the United States. Uh It's on Roku and Amazon Fire and all of the other O, T, T and T TV categories,

and we're on mobile. You can find us on on iOS and Android too. Thanks for listening. Be sure to leave us a review at Apple Podcasts. We love to hear from listeners, and please go to Variety dot com to sign up for the free Strictly Business newsletter, and don't forget to tune in next week for another episode of Strictly Business.