Wednesday, February 23, 2011

Cable Operators Cannot Win The Battle With Just Content

Attention cable operators, while linear and on demand content is an important element of the fight for subscription, it is not the only element. Content creators are selling their content to everyone. For example, CBS has sold their content to an over the top competitor, Netflix. Other content companies have done similar deals with them and Amazon and others. So no matter what store a customer goes into, their content is there to be viewed. And these competitors are selling their service for a fraction of what cable operators are charging.

Yes, content is king, and cable needs to also carry this same content. But to remain competitive, they must do more. TV Everywhere is one means to remain competitive. While on demand TV Everywhere is important, so is linear carriage on TV Everywhere. It is what Dish offers its customers through Slingbox. Cable operators have to be more price sensitive with packages to suit every economic level. And there is nothing like great service. Best Buy offers the Geek Squad; cable operators need to brand their service to help customers sort through their technological questions. Cable operators cannot underestimate how service can be valued by consumers.

Competitors are grabbing at cable operators' customer base. Some are cutting the cord altogether; others are going to less expensive alternatives like Direct, Dish, and the telcos. While operators are seeing declines in basic subscription, their competitors are enjoying growth. Operators can't keep squeezing more revenue from these remaining subs. They must recapture customers. Better set top box interfaces, better service, more technological innovation, and more competitive pricing are key to that growth. Otherwise, with the same content being offered to their competition and no longer remaining differentiated, customers will continue to flee for better pastures.

1 comment:

  1. I LOVE the Sling Adapter. I am not ready to cut the cord entirely as I enjoy having a company like DISH, which does a great job of providing and organizing content for me. I work for DISH and we all had a chance to check out the Sling before it hit the market. It works with the Dish Remote Access app and, through dozens of hand-held devices, lets customers view ALL of their channels live, manage and view DVR content alongside thousands of On-Demand movies and shows!! Check it out aqt to get more info!!!