1 00:00:08,200 --> 00:00:12,600 Speaker 1: Welcome to Strictly Business Varieties, weekly podcast featuring conversations with 2 00:00:12,680 --> 00:00:16,799 Speaker 1: industry leaders about the business of media and entertainment. I'm 3 00:00:16,880 --> 00:00:21,200 Speaker 1: Cynthia Littleton, co editor in chief of Variety Today. My 4 00:00:21,239 --> 00:00:25,320 Speaker 1: guest is Andrew Fitzgerald, Senior Vice president of Streaming video 5 00:00:25,440 --> 00:00:29,800 Speaker 1: Services for Hearst Television. I started my career in business 6 00:00:29,880 --> 00:00:35,240 Speaker 1: journalism covering syndication and TV station groups. I love local broadcasting. 7 00:00:35,760 --> 00:00:38,160 Speaker 1: I have great respect for the mission of local TV, 8 00:00:38,600 --> 00:00:41,600 Speaker 1: which is to make money, but also to inform and 9 00:00:41,720 --> 00:00:45,880 Speaker 1: connect the communities that stations serve. This instrument can teach, 10 00:00:46,159 --> 00:00:49,760 Speaker 1: after all, So with this crazy moment of growth and 11 00:00:49,880 --> 00:00:52,760 Speaker 1: evolution for TV, I've been very keen to watch the 12 00:00:52,840 --> 00:00:56,200 Speaker 1: changes in broadcast TV at the national and local levels. 13 00:00:56,800 --> 00:00:59,520 Speaker 1: Hearst Television is one of the biggest and most well 14 00:00:59,640 --> 00:01:03,160 Speaker 1: run groups in the country. They have the independence and 15 00:01:03,200 --> 00:01:07,160 Speaker 1: the resources to do interesting experiments. They're doing that now 16 00:01:07,400 --> 00:01:11,760 Speaker 1: with the free streaming platform launched last year called very Local. 17 00:01:12,400 --> 00:01:16,760 Speaker 1: It showcases local newscasts from Hearst twenty six TV stations. 18 00:01:17,319 --> 00:01:20,760 Speaker 1: It also has hyperlocal original series that are designed to 19 00:01:20,800 --> 00:01:23,679 Speaker 1: be connected tissue for viewers that live in the region. 20 00:01:24,400 --> 00:01:27,360 Speaker 1: They can go check out that amazing sandwich shop or 21 00:01:27,480 --> 00:01:32,080 Speaker 1: day spa or nonprofit organization featured in a show. Fitz 22 00:01:32,160 --> 00:01:36,080 Speaker 1: Gerald explains in detail Urst's approach to growing very Local 23 00:01:36,240 --> 00:01:40,520 Speaker 1: on the Bass track, referring to free ad supported streaming 24 00:01:40,600 --> 00:01:45,240 Speaker 1: TV channels that are already changing the streaming marketplace significantly. 25 00:01:45,800 --> 00:01:47,840 Speaker 1: So we've got a lot of talk about local TV 26 00:01:48,000 --> 00:02:01,480 Speaker 1: coming right up after this break. Andrew Fitzgerald, Senior vice 27 00:02:01,520 --> 00:02:05,080 Speaker 1: president of streaming video Services for Her Television, thank you 28 00:02:05,120 --> 00:02:07,880 Speaker 1: for joining me today. It's my pleasure. I'm happy to 29 00:02:07,880 --> 00:02:10,320 Speaker 1: be here. So I wanted to talk to you about 30 00:02:10,360 --> 00:02:15,400 Speaker 1: Her Television's streaming local streaming initiative that is appropriately called 31 00:02:15,760 --> 00:02:18,960 Speaker 1: very Local. Uh. This was a big initiative that you 32 00:02:19,040 --> 00:02:24,359 Speaker 1: launched last you know, late summer fallish of and as 33 00:02:24,400 --> 00:02:27,160 Speaker 1: we speak here today on the cusp of Labor Day 34 00:02:27,200 --> 00:02:30,480 Speaker 1: weekend here Friday afternoon, thank you, doubly thank you for 35 00:02:30,560 --> 00:02:34,120 Speaker 1: making the time you are. You just announced this week 36 00:02:34,240 --> 00:02:38,080 Speaker 1: an expansion, more shows, more content, kind of a slightly 37 00:02:38,120 --> 00:02:42,520 Speaker 1: wider scope across your twenty six. Did I get it right? 38 00:02:42,760 --> 00:02:45,880 Speaker 1: That's all right? Now? That is old school. That is 39 00:02:45,919 --> 00:02:49,760 Speaker 1: an old school syndication reporter talking. Uh twenty six markets. 40 00:02:49,760 --> 00:02:53,320 Speaker 1: You know, such an interesting canvas for you to work 41 00:02:53,360 --> 00:02:55,919 Speaker 1: with and to do local programming. And I was intrigued 42 00:02:56,080 --> 00:02:58,240 Speaker 1: last year when you announced it, and it's sort of 43 00:02:58,240 --> 00:03:00,200 Speaker 1: on my to do list, and when I saw last week, 44 00:03:00,200 --> 00:03:02,000 Speaker 1: I was like, I'm gonna we're going to talk about this. 45 00:03:02,320 --> 00:03:05,760 Speaker 1: So I guess I'll start by asking you, after you 46 00:03:05,880 --> 00:03:08,040 Speaker 1: launched it last year, what are you seeing in the market. 47 00:03:08,080 --> 00:03:10,400 Speaker 1: What what are the encouraging signs that you're seeing that 48 00:03:10,480 --> 00:03:16,120 Speaker 1: allowed you to expand the slate absolutely, so, Very Local 49 00:03:16,360 --> 00:03:21,880 Speaker 1: is Herst Television's entry into the streaming landscape. You know, 50 00:03:21,960 --> 00:03:26,480 Speaker 1: at the core of our business is local broadcasting. We 51 00:03:27,160 --> 00:03:31,920 Speaker 1: produce award winning and top rated newscasts in all of 52 00:03:31,919 --> 00:03:38,720 Speaker 1: our twenty markets. UM. The really our goal with Very 53 00:03:38,760 --> 00:03:44,400 Speaker 1: Local is we are trying to make that incredible local 54 00:03:44,440 --> 00:03:50,200 Speaker 1: news content available to consumers via streaming. UM. As we 55 00:03:50,840 --> 00:03:54,480 Speaker 1: have looked at the landscape when we launched the product, 56 00:03:55,800 --> 00:03:59,400 Speaker 1: there were two trends we thought were really interesting. The 57 00:03:59,480 --> 00:04:07,200 Speaker 1: first was the growth in broadband only consumers. And as 58 00:04:07,320 --> 00:04:12,320 Speaker 1: that population continues to grow, and indeed as that growth 59 00:04:12,480 --> 00:04:18,320 Speaker 1: accelerates in markets around the United States, there are more 60 00:04:18,360 --> 00:04:24,719 Speaker 1: and more consumers that don't have easy access to local 61 00:04:24,760 --> 00:04:28,960 Speaker 1: broadcast news. And so at its core our goal was 62 00:04:29,080 --> 00:04:35,440 Speaker 1: Very Local was to connect those folks with our local 63 00:04:35,480 --> 00:04:42,120 Speaker 1: broadcast news. The second interesting trend has been we sort 64 00:04:42,120 --> 00:04:47,440 Speaker 1: of saw the beginnings of it the project inception has 65 00:04:47,520 --> 00:04:52,600 Speaker 1: been the growth and demand for a VOD services UM. 66 00:04:53,000 --> 00:04:57,000 Speaker 1: That's been a big story across media this year for sure. Yeah, 67 00:04:57,120 --> 00:04:59,560 Speaker 1: and that is and so you know, very local is 68 00:04:59,760 --> 00:05:03,960 Speaker 1: it it's an avid completely free app. Were one of 69 00:05:04,000 --> 00:05:06,719 Speaker 1: the apps in the Roku store that has free on 70 00:05:06,760 --> 00:05:10,360 Speaker 1: the on the icon itself. Want to want to make 71 00:05:10,400 --> 00:05:13,440 Speaker 1: sure people know it's uh, it's free to use, it's 72 00:05:13,480 --> 00:05:16,880 Speaker 1: an it's eye catching, no question, free and sale always 73 00:05:16,920 --> 00:05:21,760 Speaker 1: gets UM and uh, and so we are a free 74 00:05:21,760 --> 00:05:28,720 Speaker 1: to use a bad platform. We are absolutely seeing that 75 00:05:28,720 --> 00:05:34,440 Speaker 1: that sort of growth and consumer demand around free ad 76 00:05:34,520 --> 00:05:38,880 Speaker 1: supported streaming services. We are absolutely seeing that in our 77 00:05:38,920 --> 00:05:42,800 Speaker 1: metrics in the Very Local app UM and so you know, 78 00:05:42,839 --> 00:05:47,120 Speaker 1: at its at its core, we are connecting consumers with 79 00:05:47,240 --> 00:05:51,640 Speaker 1: local news via streaming UM. However, a big part of 80 00:05:51,680 --> 00:05:55,560 Speaker 1: the Very Local initiative for us is we wanted to 81 00:05:55,839 --> 00:06:03,160 Speaker 1: differentiate the offering in the marketplace with more local content. UM. 82 00:06:03,200 --> 00:06:07,680 Speaker 1: And whether that is a consumer who is in a 83 00:06:07,680 --> 00:06:12,240 Speaker 1: broadbent only home that may not have a connection to 84 00:06:12,320 --> 00:06:17,160 Speaker 1: a broadcast news station, yet new local content gives us 85 00:06:17,160 --> 00:06:21,279 Speaker 1: an opportunity to connect with that consumer, or if it's 86 00:06:21,320 --> 00:06:25,760 Speaker 1: a consumer that does have access to the linear signal, 87 00:06:25,960 --> 00:06:30,279 Speaker 1: is a cable subscriber does have a broadcast antenna. UM 88 00:06:30,400 --> 00:06:34,680 Speaker 1: we wanted to be able to offer more local content 89 00:06:35,520 --> 00:06:38,560 Speaker 1: for them to connect with um AND and so that 90 00:06:38,560 --> 00:06:40,360 Speaker 1: that has been a big part of the Very Local 91 00:06:40,400 --> 00:06:43,680 Speaker 1: initiative and a big part of what we're working on 92 00:06:44,560 --> 00:06:46,800 Speaker 1: for around Labor Day weekend is kind of kind of 93 00:06:46,800 --> 00:06:51,200 Speaker 1: showing off the all of the incredible original content we've 94 00:06:51,240 --> 00:06:54,640 Speaker 1: been producing over the course of this last year. Let 95 00:06:54,680 --> 00:06:57,080 Speaker 1: me ask you one question on the on the purely 96 00:06:57,120 --> 00:07:01,599 Speaker 1: on the local newscast side, are those live stream simulcasts 97 00:07:01,760 --> 00:07:04,520 Speaker 1: with actual news podcasts or they are they making it 98 00:07:04,560 --> 00:07:08,200 Speaker 1: available in an on demand format or both? Great question. 99 00:07:08,279 --> 00:07:12,880 Speaker 1: So the newscasts are available on demand um AND, they 100 00:07:12,920 --> 00:07:17,360 Speaker 1: are available in our fast streams, so in an in 101 00:07:17,440 --> 00:07:21,680 Speaker 1: an as live format, they are not simulcast. So we 102 00:07:22,040 --> 00:07:28,120 Speaker 1: we continue to believe that cable subscriptions are valuable and 103 00:07:28,440 --> 00:07:34,440 Speaker 1: UM AND to recognize the value of people who are 104 00:07:34,440 --> 00:07:37,960 Speaker 1: paying for a cable subscription. UM. We actually have time 105 00:07:38,040 --> 00:07:43,760 Speaker 1: shifted our newscasts in the fast channel, so it's uh, 106 00:07:44,000 --> 00:07:47,920 Speaker 1: you know, a slight time delay from when it would 107 00:07:47,960 --> 00:07:52,080 Speaker 1: have been live, but the news is available there for free. 108 00:07:52,640 --> 00:07:55,600 Speaker 1: So is it like an hour two hours after a telecaster? 109 00:07:55,800 --> 00:07:58,960 Speaker 1: It's variable, but yeah, in that range. If I go 110 00:07:59,040 --> 00:08:01,840 Speaker 1: on Very Local, can I watch any one of your 111 00:08:01,840 --> 00:08:05,040 Speaker 1: twenty market newscasts? Will they be available? I can? I 112 00:08:05,080 --> 00:08:07,240 Speaker 1: can check out different cities or is it kind of 113 00:08:07,280 --> 00:08:11,600 Speaker 1: geo located to where I to where I'm logging on from? 114 00:08:11,640 --> 00:08:15,600 Speaker 1: So it is absolutely possible to watch newscasts from any market. Uh. 115 00:08:15,840 --> 00:08:19,600 Speaker 1: The way the app is designed, we UM we do 116 00:08:20,320 --> 00:08:23,760 Speaker 1: geolocate where you are based, and we try to offer 117 00:08:23,800 --> 00:08:26,880 Speaker 1: you the local experience that is going to make the 118 00:08:26,920 --> 00:08:30,760 Speaker 1: most sense for you. So if you were in Sacramento, California, 119 00:08:30,800 --> 00:08:35,640 Speaker 1: for example, we would offer you the Very Locals uh 120 00:08:35,760 --> 00:08:39,680 Speaker 1: Sacramento experience, which would feature newscasts from k c R 121 00:08:39,679 --> 00:08:44,120 Speaker 1: a UM. But you could in the settings menu very 122 00:08:44,160 --> 00:08:48,280 Speaker 1: easily change your location to see other locations around the US. 123 00:08:49,320 --> 00:08:51,160 Speaker 1: Do you see a lot of do you see people 124 00:08:51,480 --> 00:08:55,760 Speaker 1: in different areas shopping around to look at newscasts? A 125 00:08:55,840 --> 00:09:00,360 Speaker 1: little a little bit, but most of the viewership, but 126 00:09:00,520 --> 00:09:04,400 Speaker 1: mostly once people land in a in a market view 127 00:09:04,880 --> 00:09:07,600 Speaker 1: that becomes their home screen and they just default back 128 00:09:07,600 --> 00:09:11,120 Speaker 1: to that. In any way, do you bundle advertising with 129 00:09:11,240 --> 00:09:14,280 Speaker 1: the linear stream and and those like is it is 130 00:09:14,320 --> 00:09:16,600 Speaker 1: it a bundled player or is the app and that stream? 131 00:09:16,640 --> 00:09:20,440 Speaker 1: Is that all sold discreetly on advertising? Right now, we're 132 00:09:20,440 --> 00:09:25,720 Speaker 1: still experimenting with the right ways to connect advertisers with consumers. UM. 133 00:09:25,960 --> 00:09:29,920 Speaker 1: Very local does include advertising from our hearst any screen 134 00:09:29,960 --> 00:09:35,600 Speaker 1: product which is a locally sold product for local advertisers 135 00:09:35,600 --> 00:09:39,760 Speaker 1: to buy streaming inventory. Um. And so a fair number 136 00:09:39,800 --> 00:09:43,280 Speaker 1: of those ads make their way through to the very 137 00:09:43,320 --> 00:09:47,960 Speaker 1: Local platform. Uh. And then in addition, UM, we are 138 00:09:48,280 --> 00:09:51,200 Speaker 1: in the in the programmatic marketplace like many folks in 139 00:09:51,240 --> 00:09:54,320 Speaker 1: the fast universe. That's it. Yeah, it's a it's a 140 00:09:54,440 --> 00:09:57,600 Speaker 1: it's a it's a crowded field now and I'm curious. 141 00:09:57,640 --> 00:09:59,559 Speaker 1: So that tells us that there's going to be more 142 00:09:59,600 --> 00:10:03,880 Speaker 1: innovatorations in new lanes carved out within that, which is 143 00:10:03,960 --> 00:10:08,680 Speaker 1: kind of interesting to watch watch happen. UM. So that's 144 00:10:08,840 --> 00:10:11,360 Speaker 1: your news content talk about because you have a fair 145 00:10:11,440 --> 00:10:13,839 Speaker 1: number of originals, a lot of lifestyle stuff, a lot 146 00:10:13,880 --> 00:10:18,160 Speaker 1: of obviously local color, which I think, you know, I 147 00:10:18,640 --> 00:10:21,720 Speaker 1: I also feel as I love that there's not a 148 00:10:21,760 --> 00:10:23,920 Speaker 1: lot of that, especially I'm in a big market like 149 00:10:24,080 --> 00:10:26,400 Speaker 1: l A. It's kind of hard, but I know, anything 150 00:10:26,520 --> 00:10:29,320 Speaker 1: sub the top ten, I would think there's so much 151 00:10:29,400 --> 00:10:32,560 Speaker 1: opportunity to reach people that otherwise previously couldn't have been 152 00:10:32,559 --> 00:10:35,240 Speaker 1: on linear TV. But in the you know, with the 153 00:10:35,280 --> 00:10:37,480 Speaker 1: sort of the more modest playing field, you could and 154 00:10:37,480 --> 00:10:41,360 Speaker 1: I'm sure you all are thinking incubating not only content 155 00:10:41,400 --> 00:10:45,640 Speaker 1: and story and talent, but also advertisers. I think there 156 00:10:45,800 --> 00:10:50,160 Speaker 1: is enormous opportunity, uh, outside of the top ten markets, 157 00:10:50,160 --> 00:10:53,840 Speaker 1: and that's one of the things that really fun about 158 00:10:54,080 --> 00:10:56,959 Speaker 1: her television footprint. UM So, we we don't have a 159 00:10:57,840 --> 00:11:01,840 Speaker 1: ton of top ten markets. We've got Boston, but we 160 00:11:02,040 --> 00:11:06,040 Speaker 1: have a number of markets around the US, and indeed 161 00:11:06,040 --> 00:11:12,080 Speaker 1: most of our footprint our cities with a real palpable 162 00:11:12,360 --> 00:11:18,360 Speaker 1: creative and entrepreneurial energy and cities that at the national 163 00:11:18,520 --> 00:11:23,240 Speaker 1: level you don't see as many stories covering. And of 164 00:11:23,280 --> 00:11:25,280 Speaker 1: course at the local level, we we put all of 165 00:11:25,320 --> 00:11:29,960 Speaker 1: our effort into into covering these places. Um and what 166 00:11:30,200 --> 00:11:32,720 Speaker 1: very local has given us an opportunity to do is 167 00:11:32,760 --> 00:11:38,760 Speaker 1: to begin to build programs that celebrate these places. Uh. 168 00:11:38,800 --> 00:11:42,000 Speaker 1: And so the way that we've approached this, we're really 169 00:11:42,000 --> 00:11:45,600 Speaker 1: thinking with the consumer in mind. We're thinking about content 170 00:11:45,760 --> 00:11:50,199 Speaker 1: that entertains but also has pretty high utility. UM. So, 171 00:11:51,000 --> 00:11:54,360 Speaker 1: if you live in a market featured by one of 172 00:11:54,360 --> 00:11:57,880 Speaker 1: our local originals, we want you to be entertained, but 173 00:11:58,000 --> 00:12:01,840 Speaker 1: also learn about the place that you live, learn things 174 00:12:01,880 --> 00:12:05,640 Speaker 1: to do, places to go, interesting restaurants or chefs, etcetera. 175 00:12:06,800 --> 00:12:11,760 Speaker 1: So our our formats are built to look and feel 176 00:12:11,800 --> 00:12:17,360 Speaker 1: familiar to someone who is watching unscripted cable. We have 177 00:12:18,040 --> 00:12:23,480 Speaker 1: travel formats, cooking formats, uh that if you, if you 178 00:12:23,520 --> 00:12:26,240 Speaker 1: are a consumer of that content on cable, this is 179 00:12:26,280 --> 00:12:30,360 Speaker 1: gonna this is gonna feel very familiar to you, except 180 00:12:31,200 --> 00:12:35,080 Speaker 1: it is going to be through a lens on a 181 00:12:35,160 --> 00:12:39,160 Speaker 1: place that you likely wouldn't see normally on a national 182 00:12:39,200 --> 00:12:42,120 Speaker 1: cable channel. Um. And in many cases, it will be 183 00:12:42,600 --> 00:12:46,440 Speaker 1: the town in which you live. So, for example, we 184 00:12:46,559 --> 00:12:52,360 Speaker 1: have a cooking competition show called Plate at Pittsburgh in 185 00:12:52,400 --> 00:12:56,520 Speaker 1: which two Pittsburgh chefs compete to see who can make 186 00:12:57,320 --> 00:13:01,480 Speaker 1: the best dish and also the most Pittsburgh ish. And 187 00:13:02,000 --> 00:13:05,360 Speaker 1: those two chefs are chefs in Pittsburgh. So if you're 188 00:13:05,360 --> 00:13:10,480 Speaker 1: watching Plated Pittsburgh in that market, yes, it is a fun, 189 00:13:10,840 --> 00:13:14,600 Speaker 1: unscripted cooking competition show, just like something you might see 190 00:13:14,640 --> 00:13:18,880 Speaker 1: on cable. However, you could also make a reservation at 191 00:13:18,920 --> 00:13:23,280 Speaker 1: any of those restaurants tonight tomorrow. Uh. And that's that's 192 00:13:23,320 --> 00:13:28,040 Speaker 1: sort of level of utility and access back to the community. 193 00:13:28,360 --> 00:13:31,640 Speaker 1: We think it is really valuable and helps these programs resume. 194 00:13:32,600 --> 00:13:35,000 Speaker 1: And now do you have the deal in place with 195 00:13:35,280 --> 00:13:38,120 Speaker 1: um Open Table or whatever to so that so that 196 00:13:38,200 --> 00:13:40,760 Speaker 1: they can click right through the remote control or whatever 197 00:13:40,840 --> 00:13:43,200 Speaker 1: to make that to make that reservation or is that 198 00:13:43,240 --> 00:13:46,880 Speaker 1: next year? That's that's probably next year. But Open Table, 199 00:13:46,920 --> 00:13:48,840 Speaker 1: if you're listening, please give me a call. That sounds great, 200 00:13:49,120 --> 00:13:51,600 Speaker 1: but it does seem like, you know, and especially now 201 00:13:51,720 --> 00:13:54,880 Speaker 1: now we're really going to get into wonky wonky territory. 202 00:13:54,960 --> 00:13:57,840 Speaker 1: But as we get into a t s C three 203 00:13:57,920 --> 00:14:03,280 Speaker 1: point oh, that that kind of functionality should be pretty ready, 204 00:14:03,280 --> 00:14:07,160 Speaker 1: you know, should be much more easily handled by broadcasters. 205 00:14:07,280 --> 00:14:11,720 Speaker 1: If I understand all of that, right, I know, you know, absolutely, yeah, 206 00:14:11,720 --> 00:14:19,400 Speaker 1: So I think the sort of promised interactivity that we 207 00:14:19,440 --> 00:14:21,560 Speaker 1: have been we have been looking for in the future 208 00:14:21,600 --> 00:14:26,640 Speaker 1: of broadcasting. Uh. Certainly, I think my entire career UM 209 00:14:26,760 --> 00:14:29,960 Speaker 1: and and probably predating my career. UM, it feels like 210 00:14:30,000 --> 00:14:32,680 Speaker 1: we are in the world that that is now happening. 211 00:14:32,960 --> 00:14:37,760 Speaker 1: UM and UH certainly opportunities with a t SC three 212 00:14:37,800 --> 00:14:43,360 Speaker 1: dot OU and in in my world and streaming, UH, 213 00:14:44,080 --> 00:14:47,920 Speaker 1: we're already seeing the kind of beginnings of interactivity in 214 00:14:47,960 --> 00:14:53,280 Speaker 1: the streaming space, even even just um sort of simple 215 00:14:53,840 --> 00:15:01,320 Speaker 1: models of uh the sort of higher CPM interactive advertising 216 00:15:01,400 --> 00:15:07,560 Speaker 1: that runs in video on demand services. UM, that that 217 00:15:07,680 --> 00:15:12,120 Speaker 1: kind of offering to the consumer where they they're they're 218 00:15:12,160 --> 00:15:15,120 Speaker 1: having a little bit more of a dialogue between them 219 00:15:15,160 --> 00:15:18,880 Speaker 1: and the and the big screen. UM. I think there's 220 00:15:18,880 --> 00:15:23,080 Speaker 1: a there's an enormous opportunity, and especially as our focus 221 00:15:23,440 --> 00:15:30,760 Speaker 1: is deepening a relationship and deepening engagement with local consumers, 222 00:15:31,160 --> 00:15:33,360 Speaker 1: I think there's a there's a ton of opportunity there 223 00:15:33,360 --> 00:15:36,280 Speaker 1: for us. We know that there's so much investment going 224 00:15:36,320 --> 00:15:40,480 Speaker 1: on in in that area of digital tools that enable 225 00:15:40,560 --> 00:15:43,160 Speaker 1: that kind of conversation. That's what we're definitely here. From 226 00:15:43,320 --> 00:15:46,080 Speaker 1: the investment side, we're always focused on what's the next 227 00:15:46,080 --> 00:15:49,880 Speaker 1: studio and people are saying actually infrastructure, ticketing apps or 228 00:15:49,920 --> 00:15:51,680 Speaker 1: the hot thing. But it makes sense. You know, you've 229 00:15:51,680 --> 00:15:53,760 Speaker 1: got to you've got to facilitate it and we're all 230 00:15:53,760 --> 00:15:56,080 Speaker 1: spoiled now we want it just we wanted a couple 231 00:15:56,080 --> 00:15:58,720 Speaker 1: of clicks and oh, there it is. You know. Um, 232 00:15:59,160 --> 00:16:01,800 Speaker 1: let me ask, so do you own? Does First own 233 00:16:01,880 --> 00:16:04,120 Speaker 1: all the content? Is there? Is there any kind of 234 00:16:04,160 --> 00:16:06,840 Speaker 1: licensing going on or do you I'm guessing you produce 235 00:16:06,920 --> 00:16:10,040 Speaker 1: it using a lot of the station resources. So there's 236 00:16:10,040 --> 00:16:13,280 Speaker 1: a there's a small amount of content that is licensed 237 00:16:13,280 --> 00:16:16,200 Speaker 1: on Very Local, but the vast majority of what you 238 00:16:16,200 --> 00:16:18,920 Speaker 1: see on Very Local UH is produced and owned by 239 00:16:18,960 --> 00:16:23,080 Speaker 1: Hearst UM and this is really these are our programs 240 00:16:23,120 --> 00:16:29,000 Speaker 1: that we have developed and defined specifically to highlight these 241 00:16:29,040 --> 00:16:33,360 Speaker 1: markets and UH and you know, put put a lot 242 00:16:33,400 --> 00:16:36,480 Speaker 1: of work into what is what is the best way 243 00:16:36,560 --> 00:16:38,840 Speaker 1: to produce a show that is going to reflect this 244 00:16:38,960 --> 00:16:45,760 Speaker 1: sitting don't surf around. We'll be right back with more 245 00:16:45,920 --> 00:16:49,920 Speaker 1: on the future of local TV with Hearst Televisions Andrew Fitzgerald. 246 00:16:56,720 --> 00:17:00,520 Speaker 1: And we're back with more from Hearst Televisions. Andrew Gerald. 247 00:17:01,760 --> 00:17:06,000 Speaker 1: First has very well established Esquire, Costropolitan, you know magazines 248 00:17:06,040 --> 00:17:09,080 Speaker 1: that have also a lot of content resources. Is there 249 00:17:09,080 --> 00:17:13,119 Speaker 1: any Is there any cross pollination there? Absolutely? Um, So 250 00:17:13,440 --> 00:17:16,880 Speaker 1: on Very Local, we have a few properties that are 251 00:17:17,840 --> 00:17:22,640 Speaker 1: built by Herst magazine, so uh, the Delish food brand, 252 00:17:22,760 --> 00:17:25,600 Speaker 1: we have um some shows under the Delicio food brand. 253 00:17:25,640 --> 00:17:29,560 Speaker 1: We actually have a show from Esquire called In Transit, 254 00:17:30,160 --> 00:17:34,120 Speaker 1: which is a celebrity interview show hosted by Dave Holmes 255 00:17:34,880 --> 00:17:38,160 Speaker 1: in which he's um interviewing celebrities in an airport bar 256 00:17:38,760 --> 00:17:43,120 Speaker 1: as they travel to different destinations around America, talking about genius, 257 00:17:43,160 --> 00:17:47,400 Speaker 1: that's a career, their career, and also where they're where 258 00:17:47,400 --> 00:17:51,199 Speaker 1: they're headed to. HM, well that's cool. Who um for 259 00:17:51,280 --> 00:17:53,639 Speaker 1: the content that airs on Very Local? Who sells that? Does? 260 00:17:53,760 --> 00:17:55,840 Speaker 1: Do you have a dedicated sales team or is the 261 00:17:55,920 --> 00:18:02,280 Speaker 1: advertising sold by the individual station groups? So it's the 262 00:18:02,320 --> 00:18:05,840 Speaker 1: advertising and Very Local right now is a mix of 263 00:18:06,000 --> 00:18:10,879 Speaker 1: some locally sold through our Hearst any screen product and 264 00:18:10,920 --> 00:18:15,520 Speaker 1: then some programmatic which is run by a team that 265 00:18:15,600 --> 00:18:20,159 Speaker 1: handles our programmatic sales at large. It would seem intuitively 266 00:18:20,200 --> 00:18:22,159 Speaker 1: that it's a great way to bring in advertisers that 267 00:18:22,200 --> 00:18:24,879 Speaker 1: wouldn't maybe yet have the heft to be on linear 268 00:18:25,320 --> 00:18:27,520 Speaker 1: at this stage. Is that Is that a fair assessment 269 00:18:27,560 --> 00:18:29,760 Speaker 1: that you can it allows you to bring in people 270 00:18:29,760 --> 00:18:32,440 Speaker 1: that it wouldn't otherwise be on the air. Well certainly 271 00:18:32,640 --> 00:18:36,639 Speaker 1: for our so our first any screen product predates Very 272 00:18:36,680 --> 00:18:40,119 Speaker 1: Local by I think about two years, and the idea 273 00:18:40,200 --> 00:18:45,840 Speaker 1: there was to offer local advertisers the opportunity to be 274 00:18:45,920 --> 00:18:50,200 Speaker 1: in the streaming landscape. Um. And so you know, through 275 00:18:51,080 --> 00:18:54,760 Speaker 1: UH going out in the marketplace and finding the right 276 00:18:54,840 --> 00:19:00,439 Speaker 1: inventory matches for local advertisers goals um. And now with 277 00:19:00,640 --> 00:19:04,600 Speaker 1: very Local, we we are helping to connect those same 278 00:19:05,400 --> 00:19:11,040 Speaker 1: local advertisers with audience consuming her television content um and 279 00:19:11,080 --> 00:19:15,040 Speaker 1: we expect that to continue to increase um. And so 280 00:19:15,160 --> 00:19:19,800 Speaker 1: it is I think the the opportunity right now is 281 00:19:22,000 --> 00:19:26,320 Speaker 1: with our existing advertising relationships in local markets, how do 282 00:19:26,359 --> 00:19:30,720 Speaker 1: we help bring those advertisers into this whole new world 283 00:19:30,800 --> 00:19:35,879 Speaker 1: of advertising, whether whether that is within Very Local expanding 284 00:19:35,880 --> 00:19:44,040 Speaker 1: out through streaming via her stanny screen Yah mhm um. 285 00:19:44,080 --> 00:19:46,640 Speaker 1: What do you think? What do you find in terms 286 00:19:46,680 --> 00:19:49,720 Speaker 1: of audience profile, the difference in the audience profile of 287 00:19:49,760 --> 00:19:52,560 Speaker 1: people that watch tune into Very Local, whether it's the 288 00:19:52,560 --> 00:19:55,480 Speaker 1: original content or a newscast versus what you'll what you'd 289 00:19:55,480 --> 00:19:59,760 Speaker 1: see on the linear mothership station in the market. So 290 00:20:02,200 --> 00:20:07,040 Speaker 1: very Local audience is pretty much as mass market as 291 00:20:07,040 --> 00:20:15,960 Speaker 1: our linear stations, UM, with with perhaps a slightly younger event. Um, 292 00:20:16,240 --> 00:20:21,600 Speaker 1: not surprising, but the but yeah, it is to be 293 00:20:21,680 --> 00:20:27,600 Speaker 1: in the broadcast industry. Is your your market is very 294 00:20:27,680 --> 00:20:32,320 Speaker 1: much general general mass market and your your affinity area, 295 00:20:32,440 --> 00:20:37,040 Speaker 1: your interest graph is people care about the place that 296 00:20:37,080 --> 00:20:40,080 Speaker 1: they live. Do you think about how you program very 297 00:20:40,119 --> 00:20:42,800 Speaker 1: local so as to not in any way, you know, 298 00:20:43,040 --> 00:20:46,600 Speaker 1: cannibalize a line linear audience or is that not a concern? 299 00:20:46,640 --> 00:20:48,800 Speaker 1: Do you feel like you fish in different ponds in 300 00:20:48,920 --> 00:20:51,560 Speaker 1: terms of in terms of the content that runs on 301 00:20:51,680 --> 00:20:53,920 Speaker 1: Very Local and the content available you know that might 302 00:20:53,920 --> 00:20:56,600 Speaker 1: be available say on the weekend on one of on 303 00:20:57,320 --> 00:21:02,919 Speaker 1: one of the stations. Um, there there is not outside 304 00:21:02,920 --> 00:21:10,080 Speaker 1: of the newscasts and other station produced uh, other stations 305 00:21:10,119 --> 00:21:14,320 Speaker 1: produced content. Um, there is not a ton of overlap 306 00:21:14,440 --> 00:21:17,240 Speaker 1: between what is airing a linear channel and what is 307 00:21:17,280 --> 00:21:21,640 Speaker 1: airing and very local. Um. You know, the linear channel, 308 00:21:21,680 --> 00:21:24,760 Speaker 1: in addition to our locally produced content, includes content from 309 00:21:24,760 --> 00:21:29,360 Speaker 1: our syndication partners, content from our our network partners. Um, 310 00:21:29,760 --> 00:21:31,639 Speaker 1: none of that is appearing in Very Local and so 311 00:21:32,440 --> 00:21:35,560 Speaker 1: and then on the very local side, it's very it's 312 00:21:35,560 --> 00:21:40,480 Speaker 1: actually quite rare for us to take original content that 313 00:21:40,520 --> 00:21:42,960 Speaker 1: has been produced for Very Local and run that on 314 00:21:43,000 --> 00:21:49,080 Speaker 1: the linear side. UM. Part of our Labor Day UH special, 315 00:21:49,840 --> 00:21:56,360 Speaker 1: the More to Explore special is about highlighting these original 316 00:21:56,400 --> 00:21:59,960 Speaker 1: shows that are exclusive to our streaming platform for our 317 00:22:00,080 --> 00:22:11,040 Speaker 1: linear audiences. UM. We we think about for the audiences 318 00:22:11,080 --> 00:22:17,680 Speaker 1: of the two platforms. On streaming, we're really looking at 319 00:22:19,520 --> 00:22:24,040 Speaker 1: either an audience of folks that just are not consuming 320 00:22:25,040 --> 00:22:29,480 Speaker 1: linear channels and so we're we're sort of offering them 321 00:22:29,520 --> 00:22:33,800 Speaker 1: the local news and more. And then four audiences that 322 00:22:33,840 --> 00:22:39,160 Speaker 1: are consuming content on our existing linear channel. They're they're 323 00:22:39,160 --> 00:22:43,119 Speaker 1: already in that market. We're really viewing Very Local as 324 00:22:43,119 --> 00:22:46,480 Speaker 1: an opportunity for them to deepen their engagement with that 325 00:22:46,600 --> 00:22:52,280 Speaker 1: local station. UM, and so things like the value proposition 326 00:22:52,320 --> 00:22:59,160 Speaker 1: for that consumer is these television stations produce absolutely incredible 327 00:22:59,680 --> 00:23:05,880 Speaker 1: local news specials UM. And you know most just about 328 00:23:05,880 --> 00:23:08,680 Speaker 1: all of our stations are are winning awards for their 329 00:23:09,359 --> 00:23:13,840 Speaker 1: UH Deeper Chronicle investigations, which are half hour specials which 330 00:23:13,880 --> 00:23:17,840 Speaker 1: air once or a couple of times on linear. With 331 00:23:17,920 --> 00:23:21,720 Speaker 1: a Very Local platform, we can host those in perpetuity 332 00:23:22,400 --> 00:23:24,919 Speaker 1: as video on demand assets. I see them, you know, 333 00:23:25,000 --> 00:23:27,919 Speaker 1: you see especially like every year in the Peabody finalists 334 00:23:27,920 --> 00:23:30,359 Speaker 1: and winners, you see you see these great these things 335 00:23:30,359 --> 00:23:32,920 Speaker 1: that sound just on the surface to sound like amazing 336 00:23:33,000 --> 00:23:36,639 Speaker 1: local investigations and they would air once or me and 337 00:23:36,720 --> 00:23:39,560 Speaker 1: maybe be rerun a week later and then and that 338 00:23:39,640 --> 00:23:41,440 Speaker 1: there is a lot and I will give hers to 339 00:23:41,440 --> 00:23:43,680 Speaker 1: shout out. It is one of just you can tell 340 00:23:43,800 --> 00:23:45,679 Speaker 1: that it's it's one of the few groups that are 341 00:23:45,720 --> 00:23:50,440 Speaker 1: still really investing in sort of deep local investigative work. 342 00:23:50,440 --> 00:23:52,520 Speaker 1: And that is you know, it's it's a shame to 343 00:23:52,600 --> 00:23:55,199 Speaker 1: see that, to see that dwindling. So shout out to 344 00:23:55,240 --> 00:23:58,520 Speaker 1: Hers for continuing that investment. And then it it makes 345 00:23:58,560 --> 00:24:01,320 Speaker 1: so much sense for you too, and and pro tip 346 00:24:01,520 --> 00:24:04,320 Speaker 1: around Peabodies that you could package and say, you know, 347 00:24:04,359 --> 00:24:06,440 Speaker 1: because it's really like a lot of people are seeing 348 00:24:06,440 --> 00:24:08,399 Speaker 1: these things and they sound you know, they sound like 349 00:24:08,440 --> 00:24:13,080 Speaker 1: really impactful, impactful TV. Yeah. Absolutely, And I think the 350 00:24:14,080 --> 00:24:18,280 Speaker 1: you know, for for us to be able to even 351 00:24:18,359 --> 00:24:22,560 Speaker 1: better highlight that journalism that's happening in our in our 352 00:24:22,600 --> 00:24:27,080 Speaker 1: local markets is that is as as much fun as 353 00:24:27,119 --> 00:24:30,919 Speaker 1: we're having making original content that is travel shows and 354 00:24:30,960 --> 00:24:34,800 Speaker 1: cooking shows. Um, it is really so core to very 355 00:24:34,800 --> 00:24:39,160 Speaker 1: local is our delute to better highlight that local news 356 00:24:39,160 --> 00:24:44,280 Speaker 1: content and increase the potential audience and the amount of 357 00:24:44,320 --> 00:24:47,600 Speaker 1: time that that that content is accessible to people. Much 358 00:24:47,600 --> 00:24:51,720 Speaker 1: of the production that is happening within Very Local is 359 00:24:52,240 --> 00:24:56,639 Speaker 1: is actually independent of stations. Uh. And so we we 360 00:24:56,720 --> 00:25:01,080 Speaker 1: have been for many of the shows were producing. We're 361 00:25:01,119 --> 00:25:05,320 Speaker 1: operating in a in a new landscape. Interesting. Yeah, one 362 00:25:05,359 --> 00:25:07,479 Speaker 1: of the many one of the many arenas that is 363 00:25:07,560 --> 00:25:11,760 Speaker 1: adjusting to a lot you know, both more global and 364 00:25:11,840 --> 00:25:16,600 Speaker 1: more hyper hyperlocal at the same time. Right. Uh, Andrew, 365 00:25:16,840 --> 00:25:19,720 Speaker 1: I so appreciate, I so appreciate your time. My last 366 00:25:19,800 --> 00:25:22,760 Speaker 1: question for you might be my toughest, but but but 367 00:25:22,840 --> 00:25:25,240 Speaker 1: let me ask you at this point, is Very Local 368 00:25:25,320 --> 00:25:27,760 Speaker 1: are you in a cash flow positive situation or are 369 00:25:27,800 --> 00:25:31,960 Speaker 1: you still in building mode? Uh? We're still in building mode. Um. 370 00:25:31,960 --> 00:25:36,679 Speaker 1: But we are so encouraged by the growth of the 371 00:25:36,680 --> 00:25:41,200 Speaker 1: product and the connection that we're building with audiences. UM. 372 00:25:41,240 --> 00:25:45,159 Speaker 1: So we're we're feeling very bullish on the product, truly. 373 00:25:45,200 --> 00:25:49,040 Speaker 1: Andrew really appreciate. Uh. I love local broadcasting. I am 374 00:25:49,080 --> 00:25:51,640 Speaker 1: really interested to watch its future. And I really appreciate 375 00:25:51,680 --> 00:25:54,159 Speaker 1: you letting me lob questions at you about your effort. 376 00:25:54,160 --> 00:25:57,840 Speaker 1: It's really interesting, and I think folks, even well outside 377 00:25:57,840 --> 00:26:00,320 Speaker 1: of her market should go check out Very Local because 378 00:26:00,320 --> 00:26:02,280 Speaker 1: I can tell you're putting a lot into it. If 379 00:26:02,440 --> 00:26:04,000 Speaker 1: if I can, if I can give the plug. The 380 00:26:04,119 --> 00:26:06,240 Speaker 1: Very Local app is available in any market in the 381 00:26:06,359 --> 00:26:09,600 Speaker 1: United States. Uh It's on Roku and Amazon Fire and 382 00:26:09,800 --> 00:26:13,399 Speaker 1: all of the other O, T, T and T TV categories, 383 00:26:13,440 --> 00:26:16,040 Speaker 1: and we're on mobile. You can find us on on 384 00:26:16,119 --> 00:26:25,680 Speaker 1: iOS and Android too. Thanks for listening. Be sure to 385 00:26:25,840 --> 00:26:28,679 Speaker 1: leave us a review at Apple Podcasts. We love to 386 00:26:28,720 --> 00:26:32,240 Speaker 1: hear from listeners, and please go to Variety dot com 387 00:26:32,280 --> 00:26:36,119 Speaker 1: to sign up for the free Strictly Business newsletter, and 388 00:26:36,240 --> 00:26:39,560 Speaker 1: don't forget to tune in next week for another episode 389 00:26:39,680 --> 00:26:40,720 Speaker 1: of Strictly Business.