McAdam: Wireless, Broadcast Can Co-Exist

Verizon CEO Lowell McAdam, whose desire to stream the 2014 Super Bowl live over wireless has antagonized broadcasters, says his goal is to complement, not compete with, traditional TV.

“It’s not our intent to get in the way of broadcasters,” McAdam said Tuesday at the NAB Show in Las Vegas. “I think it would actually make people more interested in being what’s broadcast rather than a tradeoff. But who knows?”

McAdam’s remarks came three months after going public at CES with plans to deliver live video over broadband, after which, “some of my friends that are broadcasters said you just became the most hated man in America,” he said.

In a Q&A with NAB CEO Gordon Smith, who noted “some might say it takes courage for a broadband guy to come to a broadcast convention,” McAdam said he believes using Verizon’s nationwide LTE wireless network to broadcast big events, like the Super Bowl, would enhance consumer experience without detracting from broadcast TV, which would unconditionally draw the vast number of viewers.

Given the architecture of both delivery systems, “it would be hard” for wireless to replace broadcast ‘s big-screen, HD in-home viewing experience. However, between the video streaming capability Verizon does have, and protocol under which “we work out rights issues with local broadcasters,” McAdam says he envisions a streaming service that would let viewers in particular markets vote for the big events they want to see on mobile — and deliver it to them.

“There is opportunity to grow the pie,” McAdam said. “I think both [Verizon and broadcast] have the opportunity to flourish,” he added, citing a friend who said mainstream technology can kill itself by hunkering down rather than working with challengers to expand possibilities.

McAdam also touched on other issues putting the wireless industry at odds with broadcasters, including the spectrum crunch the FCC hopes to allay with a voluntary spectrum auction.

McAdam conceded that TV spectrum is, in fact, the most attractive because of its strength and clarity. However, he said, “the only source of spectrum isn’t broadcasters.” The military, for instance, “has a ton of spectrum” that could be reallocated,” he said. And Verizon also is exploring other possibilities, such as using satellite spectrum when it’s not in use, he said.

McAdam said he also sees a continued  and healthy future for cable TV, which could be around for “10, 15 or 20 years,“ adding, “The more dimensions there are to a customer’s choices the better.  But I think subscription TV is going to be around for a long time.”

It is, however, incumbent upon all segments of the business — broadcasting, wireless and cable — to continue to innovate to stay relevant. “I hope we’re smart enough as a collective ecosystem to add dimensions consumers want as they want them,” he said.